Uruguay’s tax authority clarified the rules for a Swiss company selling appliances with an optional digital subscription service, specifically through Consultation No. 6679. The ruling confirmed that income from the subscriptions is exempt from non-resident income tax under the Uruguay-Switzerland Double Taxation Agreement, as the company lacks a permanent establishment in Uruguay. However, the authority distinguished this from VAT liability, stating that digital subscription services with audiovisual content consumed in Uruguay are still subject to Uruguayan VAT, regardless of the income tax treaty exemption.
Source: globalvatcompliance.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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