Guide to Uruguay IVA Taxability and Rates
Updated 3 months ago
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Standard IVA Rate
Uruguay applies a standard IVA rate of 22% on most taxable supplies of goods and services, including SaaS.
How IVA Applies to SaaS Sales
The applicable IVA rate depends on whether your sale is B2B or B2C, and whether your business is resident or non-resident in Uruguay.
Business Type | B2B SaaS Rate | B2C SaaS Rate |
|---|---|---|
Resident Business (Physical Presence) | 22% | 22% |
Non-Resident Business (Remote Seller) | 0% (reverse charge applies) | 22% |
Why Is B2B Zero-Rated for Non-Residents?
Non-resident businesses are not required to charge IVA on B2B sales to Uruguayan business customers. Instead, the reverse charge mechanism applies: the registered Uruguayan buyer self-assesses and remits the IVA on their own return. This only applies when the buyer provides a valid Uruguayan RUT.
If the buyer does not provide a valid RUT, the seller is responsible for charging and remitting the 22% IVA.
Reverse Charge at a Glance
Supply Scenario | Reverse Charge If Seller Is Registered? | Reverse Charge If Seller Is Unregistered? |
|---|---|---|
Resident business selling to domestic B2B | No. Seller charges, collects, and remits IVA. | No. Seller must register and charge IVA. |
Non-resident seller to B2B customer | Yes. Liability shifts to the buyer. | Yes. Buyer self-assesses and remits. |
IVA Reduction for Electronic Payments (B2C)
Uruguay offers a 2 percentage-point IVA reduction when B2C final consumers pay using debit cards or electronic money instruments. In practice, 22% effectively becomes 20% for those transactions. This reduction is not shown on the invoice. Resident merchants claim this as a credit in their IVA return based on the payment administrator's monthly report.
IMPORTANT: Non-resident sellers should not reduce the IVA rate on the invoice for electronic payment transactions. The benefit is handled through local payment workflows, not by changing the invoice rate.
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