How vat / sales tax works in Uruguay
Uruguay VAT defaults to 22% on domestic supplies, with 10% on basic foods, medicines, hotel stays, and passenger transport.
Traders charge output tax, deduct input tax, and file monthly electronic returns with CFE invoicing validating every transaction.
Exports zero-rate, free-zone and free-port flows follow special regimes, and agricultural supplies carry defined treatment.
Tax rates at a glance
- Standard VAT
- 22%
- Reduced VAT
- 10%
- Basic foods
- 10%
- Exports
- 0%
- Free-zone flows
- Special regime
- Filing rhythm
- Monthly
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersSaaS foundersFreelancersExpatsCross-border traders
Watch out for
- Free-zone and free-port regimes redirect treatment for qualifying operations, with status evidence deciding per flow.
- Exempt supplies block input recovery without a reduced band to blame, repricing mixed health and finance work.
- CFE validity conditions deny credits on formal defects, making issuance discipline part of every sale.
- Agricultural special regimes interact with standard VAT where primary production meets processing.
Frequently asked questions
What is the VAT rate in Uruguay?
Uruguay applies 22% standard VAT in 2026, with 10% for basic foods, medicines, stays, and transport.
How often are Uruguayan VAT returns filed?
Monthly through electronic returns backed by CFE invoicing, with input credits conditioned on valid issuance.
Do free zones change VAT treatment?
Yes for qualifying operations under zone regimes, with status, activity scope, and documentation deciding per flow.