If you have already decided to set up a company in Uruguay to offer services or products to clients abroad, your next question is probably how to invoice, collect payment and meet your tax obligations correctly. Uruguay offers a clear and favourable legal framework for exporting services: VAT exemption, IRAE territoriality and a modern, flexible corporate structure. However, doing it right requires understanding what an export of services technically involves, how to document it, which payment methods to use and which tax obligations apply. In this article we explain step by step how to get paid by foreign clients from Uruguay, from correct invoicing to choosing bank accounts and managing currencies, with practical examples, considerations on the different types of companies in Uruguay and recommendations to avoid mistakes that could cause problems with DGI or operational complications with banks and payment processors.

Exporting services: the concept and the territoriality principle

Uruguay applies the territoriality principle to IRAE (corporate income tax) and VAT. This means that only Uruguayan-source income is taxed, and only transactions considered to take place in the national territory are subject to VAT. When your Uruguayan company provides a service to a client located abroad, that service is considered exported and is therefore not subject to VAT. In addition, in many cases it may also be considered foreign-source income for IRAE purposes, depending on the type of activity and where the service is actually performed.

For your transaction to qualify as an export of services, it is essential that:

• The client is actually based abroad (domiciled outside Uruguay).
• The service is used economically outside the country.
• The transaction is properly documented with an export invoice, a contract and proof of international payment.

This qualification is what allows you to issue export invoices without VAT, avoiding the 22% you would charge on a local transaction. In some cases, especially for digital or professional services provided entirely from abroad, you might also pay no IRAE on that income, although this depends on the specific analysis of your case. It is very important to get professional advice to correctly determine the source of the income, especially if your team is distributed internationally or if you combine local operations with exports.

How to issue export invoices correctly

Invoicing is the first technical step in formalising your business with foreign clients. Your Uruguayan company must be registered with DGI and use approved electronic invoicing software. Export invoices have specific requirements that you must meet to avoid objections in future inspections.

Formal requirements of the export invoice

When issuing an export invoice from Uruguay, you must include:

• Type of receipt: export e-invoice (e-Factura de Exportación, CFE type 121 in electronic invoicing).
• Currency: it can be issued in dollars, euros or another currency, or in Uruguayan pesos (USD is generally used).
• VAT: the invoice must be VAT-exempt (0% rate or exempt), stating this expressly.
• The client’s full details: name or company name, address abroad, tax identification number in their country (if applicable).
• A clear description of the service provided.
• A sequential invoice number and the date of issue.

Whatever type of company you have chosen — an SAS, an SRL, a corporation (SA) or a sole proprietorship — the formal requirements are the same, although the complementary tax obligations may differ. If you have not yet decided which legal structure to choose, bear in mind that for service exporters the SAS and the SRL are usually the most recommended because of their simple management and lower operating costs.

Supporting documents

Issuing the invoice is not enough: you must keep supporting documents showing that the service was actually exported. This includes:

• The contract or service agreement with the client.
• Proof of international payment (bank transfer, payment processor, gateway).
• Communications showing that the service was provided (emails, deliverables, access).

DGI may ask you for this documentation at any time, especially if you have a significant volume of exports or structures related to other countries.

Payment methods: bank accounts and payment processors

Once you have invoiced correctly, the next practical step is collecting payment. For a Uruguayan company getting paid from abroad, the main options are opening a local bank account in dollars, using an account abroad, or using an international payment processor.

Bank account in Uruguay

The most traditional option is to open a business bank account in Uruguay in dollars. This allows you to receive SWIFT transfers from your international clients directly into your local account. The advantages are stability, regulatory backing and easier tax compliance. The main Uruguayan banks (public and private) offer this service, although requirements and opening times vary by institution. Your company must be properly incorporated, with all its documents up to date with DGI, BPS and the BCU (beneficial owner declaration), for the opening to go smoothly.

The costs of receiving international transfers usually include fees from the local bank and from the intermediary (correspondent) bank. In addition, some banks apply minimum activity requirements or maintenance fees, especially if your turnover is low at first. If your client pays from the United States or Puerto Rico, you can also consider opening a bank account in the United States from Uruguay or in Puerto Rico to reduce intermediation costs, although this requires meeting additional compliance requirements in those jurisdictions.

International payment processors and gateways

If you offer digital services, software, consulting or downloadable products, you will probably prefer platforms such as PayPal, Stripe, Wise, Payoneer or Mercado Pago to get paid faster and with less friction for your clients. These platforms allow you to receive payments in multiple currencies, convert them automatically and then transfer them to your Uruguayan bank account.

However, you should consider that:

• Fees can be significant (between 2% and 5% of the amount received, depending on the platform and the country of origin).
• Some platforms require your company to be domiciled in certain countries to work with them directly. In Uruguay, Stripe is not directly available (although you can use a related entity abroad), while PayPal and Payoneer do operate locally.
• Every transfer from these platforms to your account in Uruguay must be properly documented and supported by the corresponding export invoices.

Transparency with your bank and with DGI is essential: every inflow of funds must be supported by an export invoice issued correctly and on time, and by documents justifying the underlying commercial transaction.

Tax obligations when exporting services from Uruguay

Even though you pay no VAT on your exports of services, your Uruguayan company still has tax obligations to meet. It is important to understand which taxes apply and which returns you must file monthly or annually.

IRAE: corporate income tax

IRAE taxes Uruguayan-source income at a rate of 25% on net profit. Although your income comes from abroad, there may be cases in which it is still taxed in Uruguay, especially if the service is provided from the national territory. In many cases, however, income from exporting digital services provided entirely from abroad may be considered foreign-source and not be subject to IRAE. This depends on the type of activity, your company’s operating structure and the rules in force. It is essential to have a specialist tax adviser to correctly determine the source of your income and calculate the applicable tax.

VAT: exemption and documentation

As mentioned, exports of services are VAT-exempt. However, this does not mean you do not have to declare them: every month, when you file your VAT return with DGI, you must report the amounts invoiced as exports, indicating that they are exempt transactions. This may also generate a VAT credit balance if you bought local inputs or services that included VAT. That credit can be used to offset other taxes or, in certain cases, claimed as a refund.

ICOSA: only for corporations

If you chose to incorporate a corporation (SA), you must pay the Corporations Control Tax (ICOSA), an annual tax independent of your tax result. If you opted for an SAS instead, you are exempt from this tax. That is why many entrepreneurs who export services prefer the SAS to the SA. If you already have an SA and want to avoid ICOSA, you can consider converting the company, a possible procedure that requires a detailed analysis of costs and timelines.

In addition to these taxes, remember that your company must file the monthly VAT return, the IRAE returns, and BPS returns if you have employees or if you operate as a sole proprietorship and must make your own contributions.

Practical considerations and common mistakes

Operating as a service exporter from Uruguay requires administrative discipline and rigorous compliance. Some common mistakes to avoid are:

• Not issuing an export invoice: simply sending an invoice that does not meet local tax requirements can expose you to fines and DGI objections. All income must be supported by an electronic invoice issued in accordance with the rules.
• Getting paid into personal accounts: never collect your company’s income in your personal account. All payments must go into the company’s bank account, with clear traceability. Mixing personal and company assets can be costly in terms of corporate liability and tax inspections.
• Not declaring the transaction correctly: even if you pay no VAT, you must declare your export sales every month. Omitting or under-declaring them can cause future problems and significant fines.
• Invoicing in pesos when you get paid in dollars: although possible, it creates accounting and exchange-rate friction. It is advisable to invoice in the same currency in which you are paid.
• Not having supporting documents: always keep an orderly file of contracts, invoices, proof of payment and communications with your clients. If DGI audits your business, this will make the difference between a quick procedure and a complex, costly process.

Also, if you want to speed up your start-up, remember that there is the option of a ready-made SAS for sale, which lets you start operating within hours once the paperwork is complete.