- 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
Latest Posts in "Uruguay"
- Uruguay regulates food donations
- Uruguay Proposes 22% Tax on Express Shipping Imports in 2025-2029 Budget Bill
- Clothing Chamber Criticizes Ambiguous VAT on Foreign Purchases, Proposes Industry Support Fund
- Economists Criticize Opposition’s Stance on VAT for Online Foreign Purchases, Citing Lobby Influence
- Opposition Rejects Online Platform VAT, Claims It Will Harm Investment and Consumer Confidence
