On December 23, the Presidency announced the extension of the tax benefits regime for electronic invoicing services. According to the new decree, published on December 26 on the official Presidency website, the benefit will remain in effect until December 31, 2025. This news comes during a massive increase in users of the system, as, starting January 1, 2025, electronic invoicing will become mandatory in Uruguay for all companies, self-employed workers, and professionals subject to VAT. This initiative aims to modernize fiscal processes and improve efficiency in tax collection.
Although some exceptions are considered, such as small taxpayers dedicated exclusively to agricultural activities and the Monotributo Social Mides companies, the vast majority of businesses will need to adapt to the new regulations.
An Attractive Tax Benefit
The General Tax Directorate (DGI) has implemented a special regime to facilitate access to electronic invoicing for taxpayers with lower economic capacity. This measure has been extended until 2025. Among the most notable benefits is a monthly tax credit of 80 Indexed Units (UI) for basic electronic invoicing services, equivalent to $493 in 2025 (amount subject to confirmation based on the UI exchange rate as of 1/1/2025). These initiatives aim to support small businesses and self-employed workers in their transition to fiscal digitalization.
The beneficiaries of this tax incentive include:
- Companies that started operations in the corresponding fiscal year.
- Small business taxpayers under Literal E.
- Companies with annual revenues of less than 750,000 UI in the previous year ($4,405,725 in 2024).
Who are exempt from electronic invoicing?
Taxpayers who are not required to adopt electronic invoicing include:
- Taxpayers who exclusively engage in agricultural activities with revenues under UI 4,000,000 (four million indexed units), which is approximately USD 580,000 (five hundred eighty thousand U.S. dollars).
- Those who exclusively carry out value-added construction work on real estate.
- IRNR taxpayers.
- Taxpayers exempt from taxes administered by the DGI (except users of free trade zones).
- Taxpayers under the Monotributo, Monotributo Social Mides, and the Unique Social Contribution for PPL programs who meet the annual revenue limits for these types of businesses.
What should I do to register for electronic invoicing?
To register, you must:
- Choose an electronic invoicing provider.*
- Obtain a Digital Certificate for your company.**
- Have a Digital ID User.***
*Our firm works with the following Providers:
- Zureo https://web.zureo.com/ventas/c%C3%B3mo-facturas
- PPSUPPORT comercial@ppsupport.uy
- Fixed info@fixed.uy
Although there are other providers available, there is freedom in choosing the electronic invoicing provider.
**All companies must acquire a digital certificate in order to use electronic invoicing, which involves an investment of $U 5,300 (five thousand three hundred Uruguayan pesos), and it will be valid for two years.
Additionally, companies with legal status (such as SAS, SA, and SRL) must present a notarial certification to verify the company’s validity, which involves an additional investment of $U 4,300 (four thousand three hundred Uruguayan pesos).
***The owners of sole proprietorships and Monotributo taxpayers must have their personal Digital ID user in order to access the online services of the General Tax Directorate (a requirement to begin the electronic invoicing process). Most of our clients already have this.
Are there benefits for companies that register for electronic invoicing?
Yes, there are benefits with discounts of 80 Indexed Units (UI) converted to the rate as of January 1st each year (the benefit for 2023 amounts to $U 448).
- It applies to taxpayers who are subject to the minimum VAT rate (Literal E), or
- VAT taxpayers in Personal Services, IRAE, or IMEBA with annual income, as of the end of the previous fiscal year, lower than UI 750,000 (seven hundred fifty thousand indexed units), which is approximately USD 111,850 (one hundred eleven thousand eight hundred fifty U.S. dollars).
The benefit applies to services contracted between 11/01/2019 and 12/31/2023. It is expected that the government will extend this benefit for contracts in 2024.
How is the discount for Electronic Invoicing obtained?
If the taxpayer is subject to the minimum VAT rate (Literal E), the tax credit is calculated by the provider, who will deduct this amount from the service price.
Other taxpayers can offset the amount communicated by the provider as a credit against their obligations. To do this, they must include the credit amount in their tax return.
More Information:
The full resolution can be consulted on the DGI website or at https://www.impo.com.uy/bases/resoluciones-dgi-originales/2548-2023?tipoServicio=11.
If you have any questions or additional inquiries, we are at your disposal to provide the necessary advice.
The implementation of electronic invoicing is part of the process of fiscal modernization and simplification. We are committed to supporting you through this transition and ensuring that the process is as smooth as possible.
We appreciate your attention and cooperation in this important update process. We are available for any questions or clarifications.
Contact us to schedule a free online consultation.
