Uruguay's minimum IVA rate (10%): what pays less

When you think of Uruguayan IVA, 22% comes to mind, and rightly so: it's the general rate. But there's a minimum 10% rate that applies to everyday things — and knowing it helps whether you're a consumer or run a business. Here's the map.

Two rates: 22% and 10%

The rule is set by the DGI:

Per the DGI:

«En principio todos los bienes y servicios están gravados a la tasa básica del 22%, salvo que estén exonerados (articulo 38, Título 10, Texto Ordenado 2023) o que se encuentren gravados a la tasa mínima del 10% (articulo 36, Título 10, Texto Ordenado 2023).»

In English: In principle all goods and services are taxed at the basic 22% rate, unless they are exempt (article 38, Title 10, Consolidated Text 2023) or taxed at the minimum 10% rate (article 36, Title 10, Consolidated Text 2023).

What's at the 10% minimum rate

Article 36 of Title 10 lists the goods and services taxed at 10%. Among the most relevant day-to-day:

• Basic-basket foods (various essential products).
• Medicines and pharmaceutical specialties.
• Human-health services provided by licensed professionals.
• Hotel lodging (as defined by the Executive).
• Land passenger transport.

And the exempt (no IVA)

Distinct from the minimum rate, there are exempt goods and services that simply carry no IVA (for example milk, among others in article 38). “Exempt” isn't the same as “0% rate”, but for you as a consumer the effect is that you pay no IVA on those items.

Why it matters

As a consumer, you know that on health, transport or certain foods you pay less tax. As a business, it's key to invoice at the right rate: applying 22% where 10% is due (or vice versa) is an error the DGI may flag. If you sell goods or services on the list, confirm your rate. See also our IVA-explained post.

At a glance

In short: IVA is 22% by default, but health, lodging, passenger transport and part of the basic basket pay 10%, and some goods are exempt. Verify your product's rate in Title 10 or with your accountant.