- VAT on International Purchases: The proposed bill introduces VAT on small-value online imports valued at US$20 or more. Additionally, an annual exemption for total imports valued up to US$800 is included. For small-value imported items, duties and taxes can be consolidated into a single payment amounting to 60% of the declared value.
- Limitations on VAT Deductions: Value-added tax (VAT) deductions for vehicles and other goods will be restricted for taxpayers under the Corporate Income Tax (IRAE) regime who opt into the new personal services tax structure, which now includes compensation for personal services outside an employment relationship subject to resident income tax (IRPF).
- Impact on Compliance Strategies: Entities operating in Uruguay should assess the implications of these VAT changes as part of their compliance strategies, especially with the introduction of VAT on online imports and the restrictions on VAT deductions, to ensure they remain compliant with the evolving tax landscape from January 2026.
Source EY
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