IVA refund for exporters: recover the IVA on your purchases

Selling abroad has an advantage many small exporters don't fully use: not only is the export free of IVA, but the IVA you paid on purchases to produce what you exported can be recovered. Here's how that credit works.

Exports go without IVA

IVA taxes operations within the country; exports aren't taxed. That is, when you invoice a foreign client, you don't charge IVA. We cover this in our invoicing-foreign-clients post.

And you recover the IVA on your purchases

Here's the often-overlooked benefit: since you don't pass on IVA in the export sale, the IVA you paid on purchases and inputs tied to that export isn't lost — you can recover it as a tax credit. Without this mechanism, that IVA would stay “stuck” in your cost.

How: the refund certificate

The DGI implements the recovery via credit (refund) certificates. With that certificate you can pay other national taxes and BPS contributions, or endorse it to banks and financial institutions. The procedure is handled with the DGI:

Services vs goods

The classic scheme is for goods exports (with a regulated refund regime, including Law 16.492). Service exports can also be IVA-exempt in the cases the rules define, but the detail varies — see our export-of-services and IT-benefits posts. The Uruguay XXI guide helps you get oriented:

What to do

Identify clearly which purchases are tied to your export (that's the basis of the credit) and keep the documentation in order. The IVA refund has its procedure and forms; an accountant experienced in foreign trade helps you recover it without mistakes.

At a glance

In short: exporting goes without IVA and, on top, the IVA on your tied purchases is recovered via DGI refund certificates. It's real money you shouldn't leave in your cost. Verify the applicable regime and process it with your accountant.