Skip to content

Do I have to pay VAT and income tax as a sole proprietor if my clients are located abroad?

Not automatically. An independent specialist with foreign clients may qualify for preferential VAT and income-tax treatment, especially in IT and the export of services…

Work, income and business

Answer in brief

Not automatically. An independent specialist with foreign clients may qualify for favorable VAT and income tax treatment, especially in IT and the export of services, but this depends on the actual activity, the contract, and where the result is used.

It is important to describe exactly what is being sold: a service, development work, a licence, consulting, intermediary services, or goods. Having a client abroad does not in itself make the transaction an export of services. Relevant factors include the client’s country, where the work is performed, rights to the product, equipment, business risk, and the client’s possible Uruguayan branch.

Even with low or zero income tax, contributions, accounting, and administrative obligations may still apply. Before registration, provide a specialist with details of the work arrangement, currencies, turnover, and contracts in order to choose the business structure and issue invoices correctly.

Personal clarification

Need an answer based on your circumstances?

We can help you turn a general answer into practical steps tailored to your nationality, family, budget and timeline.

Tell us what needs clarification and what decision you are considering.

Need an answer based on your circumstances?

Enter your name or your company's name.

Provide one convenient way to contact you.

Tell us what needs clarification and what decision you are considering.

After submission, the data will be sent to the CRM so the team can respond to your enquiry.

Privacy policy