Countries › Uruguay › Guide › 6. Taxes › VAT in Uruguay (IVA): 22 percent basic rate, 10 percent minimum rate, exemptions, exports, digital services and the import advance

VAT in Uruguay (IVA): 22 percent basic rate, 10 percent minimum rate, exemptions, exports, digital services and the import advance

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Last verified: 2026-10-27 · Status: Stable

Uruguay's value added tax, the Impuesto al Valor Agregado (IVA), applies at 22 percent, with a 10 percent minimum rate for listed basic goods and services, on supplies of goods and services in Uruguay and on imports. Exports of goods are not taxed and listed exports of services, such as advisory services and software licences for foreign clients used abroad, are treated as exports; exporters can recover the IVA in their costs while other excess credits roll forward without refund. Digital services consumed in Uruguay and platform intermediation are taxed in Uruguay, and importers pay an IVA advance of 10 percent (3 percent for minimum rate goods) at customs.

USD figures use UYU 40.214 per US dollar, the BCU quotation for DLS. USA BILLETE on 26 October 2026; UI amounts use UYU 6.6780 per Unidad Indexada, the BCU quotation for 26 October 2026. Both were retrieved from the BCU quotations service on the verification date; conversions are for orientation only.

Key facts

IVA basic rate	22 %T.O. 2023 Title 10 art. 34 literal A), as of 2026-10-27 · in force
IVA minimum rate	10 %T.O. 2023 Title 10 art. 34 literal B) and art. 36, as of 2026-10-27 · in force
Taxable base on imports	Value of the imported good including other taxes affecting the operation T.O. 2023 Title 10 art. 12, as of 2026-10-27 · in force
IVA advance at import for basic rate goods (3 percent for minimum rate goods)	10 %Decreto Nº 220/998 art. 115, as of 2026-10-27 · in force
IVA on digital services from abroad consumed in Uruguay	Taxed at 22 percent as supplied in Uruguay T.O. 2023 Title 10 art. 5, as of 2026-10-27 · in force
Refund of input IVA	Only for exports; other excess credits carry forward T.O. 2023 Title 10 art. 14 and art. 15, as of 2026-10-27 · in force
UYU per US dollar used for conversions (BCU, DLS. USA BILLETE, 26 October 2026)	40.214 UYUBCU quotations service, as of 2026-10-27 · in force

The rule

1. The basic rate is 22 percent and the minimum rate 10 percent. The minimum rate covers the goods and services listed in art. 36, among them common bread, fish and meat, edible oils, rice, flour, pasta, sugar, yerba, coffee and tea, medicines, hotel lodging, non employee health services and local tourist packages.
Cost to do it: 22 or 10 percent of the price, collected from the customer.
Example: A service invoiced at UYU 402,140 carries UYU 88,470.80 of IVA, UYU 490,610.80 in total. / A US$10,000 service carries US$2,200 of IVA; a minimum rate item of US$10,000 carries US$1,000.Texto Ordenado 2023 (DGI), Title 10 IVA, Title 10 art. 34 and art. 36, 2006-12-27 official text · verified 2026-10-27

2. Territoriality: supplies of goods and services in Uruguay and the effective introduction of goods are taxed, wherever the contract was signed and whatever the residence of the parties; exports of goods are not taxed, nor the exports of services that the Executive Branch lists. Services rendered through the internet, technology platforms or apps are taxed when they are used or consumed in Uruguay, and platform intermediation is fully Uruguayan when both parties are in the country.
Cost to do it: IVA at 22 percent on digital services consumed in Uruguay.
Example: A UYU 4,021 monthly streaming subscription used in Uruguay carries UYU 884.62 of IVA. / A US$100 subscription consumed in Uruguay bears US$22 of IVA.Texto Ordenado 2023 (DGI), Title 10 IVA, Title 10 art. 5 (text of Ley Nº 19.535, art. 250), 2017-09-25 official text · verified 2026-10-27

3. Listed exports of services include international freight, ship repairs, and services to persons abroad that are used exclusively abroad, such as advisory and consulting services, the development and licensing of specific software, international call centres and advertising for foreign clients. Goods and services sent from the national territory into free zones get export treatment, and goods circulating inside free zones are exempt.
Cost to do it: No IVA on the export; input IVA can be recovered.
Example: Consulting fees of UYU 4,021,400 billed to a foreign client and used abroad carry no IVA, and the input IVA on the consultant's costs can be recovered. / A US$100,000 consulting contract with a foreign client used abroad is invoiced without the US$22,000 of IVA a domestic client would pay.Decreto Nº 220/998 (IVA regulation), Art. 28, art. 29 and art. 34, 1998-08-12 official text · verified 2026-10-27

4. Input credit: IVA charged by suppliers and paid on imports is deductible when it relates to goods and services that form part, directly or indirectly, of the cost of taxed operations; with mixed taxed and exempt sales the shared input IVA is apportioned by turnover. A monthly excess of input over output IVA is not refunded but carried to the next return, except for exports, where the credit can be refunded or used to pay other taxes or social security contributions.
Cost to do it: Exporters recover input IVA under the procedure set by the Executive Branch; domestic sellers carry credits forward.
Example: An exporter with UYU 88,471 of input IVA and no domestic sales can claim it back; a domestic seller in the same position carries it forward. / US$2,200 of input IVA is refundable for an exporter but only carried forward for a domestic seller.Texto Ordenado 2023 (DGI), Title 10 IVA, Title 10 art. 14 and art. 15, 2006-12-27 official text · verified 2026-10-27

5. Exempt supplies include sales of foreign currency, securities and real estate (other than those taxed under art. 36 literal I), credit assignments, interest on securities and bank deposits, real estate leases, banking operations, and some foods and inputs listed in the article.
Cost to do it: No IVA charged, but related input IVA is not deductible.
Example: Rent of UYU 402,140 for an office is IVA exempt, so the landlord cannot deduct the IVA on its own costs. / A US$10,000 monthly office rent carries no IVA.Texto Ordenado 2023 (DGI), Title 10 IVA, Title 10 art. 38 numerals 1) and 2) (Ley Nº 18.083 art. 27, integrated text), 2006-12-27 official text · verified 2026-10-27

6. Taxable base: the consideration for the goods or services, or the value of the imported good, including other taxes that affect the operation. IVA contributors importing taxed goods pay an advance at customs on the customs value plus the tariff: 10 percent for goods at the basic rate and 3 percent for goods at the minimum rate.
Cost to do it: Cash flow cost of the advance, later credited in the IVA return.
Example: Goods with customs value plus tariff of UYU 4,021,400 pay a UYU 402,140 advance at customs if taxed at 22 percent. / On US$100,000 of customs value plus tariff, the advance is US$10,000 (US$3,000 for minimum rate goods).Texto Ordenado 2023 (DGI), Title 10 IVA; Decreto Nº 220/998, Title 10 art. 12; Decreto Nº 220/998 art. 115 (literal a as worded by Decreto Nº 323/002), 1998-08-12 official text · verified 2026-10-27

7. Non residents that are IRNR taxpayers are IVA contributors for the taxed acts they perform, which reaches foreign suppliers of digital services consumed in Uruguay. For platform intermediation where the supplier or the customer is abroad, 50 percent of the activity is treated as carried out in Uruguay.
Cost to do it: IVA at 22 percent on 100 or 50 percent of the fee, depending on where the parties are.
Example: A platform earning a UYU 402,140 fee for connecting a Uruguayan customer with a foreign supplier is taxed on half of it: UYU 44,235.40 of IVA. / On a US$10,000 cross border intermediation fee, IVA is US$1,100.Texto Ordenado 2023 (DGI), Title 10 IVA; Decreto Nº 220/998 as amended by Decreto Nº 144/018, Title 10 art. 6 literal D); Decreto Nº 220/998 art. 26 BIS and art. 26 TER, 2018-05-22 official text · verified 2026-10-27

Operation	Treatment	Rule
Domestic sale of goods or services	22 percent, or 10 percent for listed items	Title 10 art. 34 and 36
Export of goods	Not taxed; input IVA refundable	Title 10 art. 5 and 14
Listed export of services (for example advisory services used abroad)	Export treatment	Decreto Nº 220/998 art. 34
Sales into free zones from the national territory	Export treatment	Decreto Nº 220/998 art. 29
Digital services consumed in Uruguay	Taxed in Uruguay	Title 10 art. 5; Decreto Nº 220/998 art. 26 BIS
Platform intermediation with one party abroad	50 percent treated as Uruguayan	Decreto Nº 220/998 art. 26 TER
Real estate leases, interest, banking operations	Exempt	Title 10 art. 38
Imports by IVA contributors	IVA plus advance of 10 or 3 percent	Decreto Nº 220/998 art. 115

IVA treatment of common operations (T.O. 2023 Title 10; Decreto Nº 220/998).

Worked example

A Uruguayan software company invoices UYU 4,021,400 (US$100,000) to a US client for a licence used in the United States: export of services, no IVA (Decreto Nº 220/998 art. 34).
It also invoices a Montevideo client UYU 402,140 (US$10,000) for local support: IVA of UYU 88,470.80 (US$2,200).
Its input IVA on rent, equipment and services is UYU 201,070 (US$5,000). The share linked to the export can be recovered (Title 10 art. 14); any excess linked only to domestic sales is carried forward (art. 15).
When it imports servers with customs value plus tariff of UYU 804,280 (US$20,000), it pays an IVA advance of UYU 80,428 (US$2,000) at customs (Decreto Nº 220/998 art. 115).

Step by step

Register for IVA with the DGI together with IRAE.
Classify each supply as taxed at 22 or 10 percent, exempt, export of goods or listed export of services, and keep the evidence that services are used abroad.
Issue electronic invoices that meet the documentation rules and keep supplier invoices to support input credit.
Apportion shared input IVA if there are exempt sales.
For exports, apply for recovery of the linked input IVA; for domestic excess, carry it forward.
For imports, budget the 10 or 3 percent advance at customs, which is later credited.

Common traps

Services to foreign clients are not automatically exports: only those listed in Decreto Nº 220/998 art. 34 and used abroad qualify, and services consumed in Uruguay stay taxed even if billed to a foreigner.
Excess input IVA of a purely domestic business is not refunded and only rolls forward (Title 10 art. 15).
Real estate leases and financial services are exempt, so landlords and lenders cannot deduct the IVA on their costs (art. 38).
Foreign digital service providers selling to Uruguayan consumers are IVA contributors in Uruguay; payment through a Uruguayan card is presumed to place the customer in Uruguay.
Pending change: Ley Nº 20.531 art. 297 adds art. 70 BIS to Title 10, exempting deposit and refund operations for single use beverage containers under approved deposit return schemes, under that law's general entry into force of 1 January 2027.

Sources

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← Withholding on payments abroad in Uruguay (IRNR): 7 percent on dividends, 12 percent on interest, royalties and services, 25 percent for low tax jurisdictionsWealth tax on companies in Uruguay (Impuesto al Patrimonio): 1.5 percent of net equity, which debts count, the IRAE offset and ICOSA →