Uruguay Moves to Tax Online Purchases

By Pittaluga Abogados

The Uruguayan Parliament is advancing a set of fiscal reforms that would extend value-added tax (VAT) obligations to purchases made through foreign online platforms such as Temu, Shein, and AliExpress, while also adopting a domestic version of the global minimum tax for large multinational enterprises. 

Under the proposal, foreign e-commerce transactions would become subject to the standard 22% VAT rate. Currently, Uruguayans may import up to three packages per year with a maximum value of USD 200 each without paying taxes. The reform would replace that rule with an annual duty-free allowance of USD 800, applicable either to a single purchase or to several smaller transactions. According to government estimates, the measure could generate roughly USD 40 million in annual revenue while responding to concerns from local retailers who argue that tax-free imports have eroded their competitiveness.

The budget also introduces the so-called Domestic Complementary Minimum Tax, aligning Uruguay with the Organisation for Economic Co-operation and Development’s (OECD) global tax framework. The measure would apply to multinational groups with worldwide revenues exceeding €750 million whose effective tax rate in Uruguay falls below 15%. The government projects that this tax could bring in about USD 360 million per year once fully implemented.