- Uruguay’s tax authority (DGI) clarified that Swiss digital subscription services consumed in Uruguay are subject to VAT, even if the provider has no permanent establishment in Uruguay.
- The DGI stated that tax treaties only allocate taxing rights but do not determine VAT liability, which is governed by Uruguayan domestic law.
- VAT applies to digital services consumed in Uruguay, determined by user location indicators such as IP address or billing address.
- The definition of audiovisual products under Uruguayan law is broad and includes content like recipes, written materials, images, and audiovisual tutorials.
- Local entities paying for these services must act as withholding agents, deducting and remitting VAT on behalf of the foreign provider.
Source: vatabout.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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