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11.2. VAT on the Supply of Services by Non-Residents

The supply of services in Uruguay by a non-resident is subject to VAT.

When a non-resident has an establishment in Uruguay, the establishment is required to register for and pay VAT.

When a non-resident has no establishment in Uruguay, they may only register if they have an address in Uruguay and appoint a tax representative that is responsible for the payment of VAT and other obligations.

Digital Supplies

Effective 1 January 2018, the following services provided by a non-resident through digital means are deemed to be rendered in Uruguay (see Sec.5.5.for source rules) and are subject to VAT:

  • Audio-visual services; and
  • Mediation or intermediation services (such as Uber or Airbnb).

Effective 1 July 2018, in case of the digital supply of audio-visual services by a non-resident to a VAT-registered customer (B2B), the recipient of the service is required to withhold VAT. In the case of digital supply of such services to a non-VAT-registered customer in Uruguay (B2C),the non-resident is required to register and pay VAT.

VAT withholding requirements on the digital supply of mediation or intermediation services by a non-resident are currently suspended, however,the non-resident is required to register and pay the corresponding VAT.

Audio-visual services include:

  • Production, distribution and intermediation of motion films and other audio-visual transmissions (including those broadcasted via the internet);
  • Technological platforms;
  • Software applications; and
  • Other similar transmission media.

Mediation or intermediation services are defined as:

  • Services that are automated, require minimum human intervention, and are not feasible without information technologies; and
  • Services that imply direct or indirect interaction between the supply and the demand of the service being provided.