In Uruguay, small companies that carry out commercial or industrial activities with annual income of less than 305,000 Indexed Units ($1,708,549) can pay a minimum VAT.
This amount is updated every year in January. The new value of the monthly fee for the year 2023 went from $4,720 to $5,170according to information from the General Tax Directorate (DGI).
Exceptions to the income cap:
Non-agricultural taxpayers who carry out their activity exclusively in fairs on public roads, authorized by the competent bodies, may choose to be included, until December 31, 2023, in the Minimum VAT regime, regardless of the amount of income that obtain in each fiscal year.
This benefit covers those who meet the following conditions:
i) exclusively sell fruits, flowers, vegetables, seafood or farm products, such as cheeses, sweets, chicken or sausages, and have the authorization of the competent body to carry out said activity
ii) accept payment for all products marketed through debit cards, electronic money instruments and the Uruguay Social Card.
Who are excluded from the minimum VAT regime
Professional ground freight forwarders, opticians and those who have the exclusive business of selling books.
Those who obtain income derived from agricultural activity.
Those who have chosen to pay the IRAE.
Those who obtain non-business income, either partially or totally.
