Exporting Services from Uruguay to the United States

If you have decided to operate from Uruguay providing professional, technology or business services to clients in the United States, you probably already know the benefits of working from a country with institutional stability, solid digital infrastructure and a predictable tax regime. Now comes the practical part: how to invoice those services correctly, which documents your US client needs to justify the payment, how to collect in dollars and which taxes apply. In this guide we review step by step the essentials of invoicing US companies from a Uruguayan company, from issuing the tax document to US withholding, Form W-8BEN-E, VAT treatment and the options for receiving payment in foreign currency. If you have not yet set up your structure, we recommend reviewing the types of companies in Uruguay to choose the best format for your operation.

Prerequisite: Having a Company Incorporated in Uruguay

To invoice services abroad formally, the first step is to set up a company in Uruguay and have an active RUT with DGI. You cannot issue a valid electronic invoice as an individual without registering under the relevant regime, and in practice many US corporate clients require working with an incorporated legal entity rather than individual contractors. The most common forms are the SAS, the SRL, the corporation (SA) and the sole proprietorship. Each has advantages depending on your situation: the SAS does not pay the corporate control tax (ICOSA) and has no minimum capital, which makes it very popular with startups and service providers. The SA can be useful if you plan to raise investment or have institutional partners. Reviewing which legal structure to choose is key before moving forward.

Once the company is incorporated, you must complete its registration with DGI as an IRAE (corporate income tax) taxpayer and, where applicable, for VAT. You will also need to register as an employer with BPS if you have employees, although many service exporters initially operate with partners only. If you need speed, you can buy a ready-made SAS, ready to operate within hours. Foreign entrepreneurs can also complete the process 100% online without travelling to Uruguay, as we explain in our guide to opening a company in Uruguay as a foreigner.

Issuing an Electronic Invoice for Service Exports

In Uruguay, every sale or service must be backed by an electronic tax document (CFE) issued through DGI’s e-invoicing system. When you invoice services abroad, you use the export e-Invoice (e-Factura de Exportación, CFE type 121), with its corresponding credit and debit notes (types 122 and 123). These documents are issued without VAT, because qualifying service exports are relieved of VAT under the principle that indirect taxes are not exported. The invoice must include the full identification of your client (name, address and tax ID if available), a detailed description of the service, the amount in US dollars or its equivalent in Uruguayan pesos at the day’s exchange rate, and a reference to the export of services.

Mandatory Invoice Details

In addition to the standard fields DGI requires on every document (issuer’s RUT, date, sequential numbering, description of the goods or services), when you invoice abroad you should include the currency agreed (usually USD), the agreed payment terms and the destination country. If your client requests an invoice in English, you can issue a commercial invoice in English as a complement, but the valid document for Uruguayan tax purposes is the CFE issued through the DGI system. Many digital service providers produce both: the Uruguayan tax document for local accounting and an English invoice in international format to make it easier for the US client to process the payment. The latter does not replace the Uruguayan e-invoice; it accompanies it for commercial purposes.

Accounting Records and Retention

All service export documents must be recorded in your accounts and backed by documentation proving that the service was actually provided to a client abroad and used there: contracts, purchase orders, emails, timesheets, deliverables, proof of payment. DGI can audit at any time, and the burden of proof lies with the taxpayer. Keeping complete, orderly documentation is essential, both to support the VAT treatment of the export and to support any position on the source of your income for IRAE purposes, discussed below.

Form W-8BEN-E: US Withholding

One of the most confusing aspects is withholding at source. When a US company pays a foreign provider, US rules may require 30% withholding on certain US-source income. However, services performed entirely outside the United States by a non-resident entity are generally foreign-source and not subject to withholding — but the payer needs a certification from you to justify to the IRS why it did not withhold. That certification is Form W-8BEN-E (Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting – Entities).

On the W-8BEN-E your Uruguayan company declares, under penalty of perjury, that it is a foreign entity and the beneficial owner of the payments. With this form, your client can usually pay the full invoice without withholding. It must be completed correctly: any error or inconsistency may lead the payer to withhold 30% as a precaution. The form requires the company’s legal name, tax address, country of residence (Uruguay), its US tax classification (usually “Corporation” for an SA or SAS; check the classification of an SRL with an adviser) and, in some cases, the foreign tax identification number (your Uruguayan RUT). Note that there is no income tax treaty between the United States and Uruguay, so no treaty benefits are claimed. A US Employer Identification Number (EIN) is not needed unless your company has activity in the United States, which is beyond the scope of this guide.

Validity and Renewal of the W-8BEN-E

Form W-8BEN-E generally remains valid until the end of the third calendar year after it is signed, provided the declared circumstances do not change. Your client may ask you to renew it or keep the original on file for all payments within that period. If your company changes its tax address, structure, beneficial owner or any relevant detail, you must inform the client and send an updated form. Many service providers keep an up-to-date template and send it with the first invoice to each new client to speed up onboarding.

VAT Treatment and the Taxation of Your Income

As mentioned, qualifying service exports are relieved of VAT in Uruguay: you do not charge VAT on your invoices to clients abroad. Unlike an ordinary exemption, exports keep the right to recover the input VAT paid on related purchases (office rent, equipment, professional services), which can be offset against other taxes or claimed back from DGI through credit certificates. To do so, the service must be among those that the regulations treat as exports and you must keep the documentation proving it.

As for IRAE, Uruguay applies the territoriality principle: only Uruguayan-source income is subject to IRAE. The definition of source is key. In general, personal, professional and technical services provided from Uruguay are considered Uruguayan-source regardless of where the client is. This applies to software development, consulting, design, digital marketing, accounting, legal advice and any service where the activity is physically carried out in Uruguayan territory. The IRAE rate is 25% on net income (revenue less allowable deductions). Software and certain related services used abroad have their own exemption regime, subject to the substance rule.

Cases Where Income May Be Foreign-Source

There are specific situations where income can qualify as foreign-source and fall outside IRAE: intermediation services whose result occurs entirely abroad, international trade operations where Uruguay is only the place of management without any intervention in the territory, and services actually performed abroad even though the company is domiciled in Uruguay. These situations require case-by-case analysis and robust supporting documentation. The burden of proof lies with the taxpayer, and DGI is usually rigorous in its audits. If you believe your operation could qualify as foreign-source, get specialised advice before deciding not to pay IRAE. A mistake can lead to adjustments, fines and interest. For mixed operations (some local services, some abroad), income can be segregated so that only the Uruguayan-source portion is taxed, subject to technical analysis and proper support.

Collecting in Dollars: Bank Accounts and Payment Methods

Once the invoice has been issued and the W-8BEN-E sent, the next step is receiving the payment. The most common method is an international wire transfer to a dollar account. Uruguay allows local companies to open and hold foreign-currency accounts without restrictions, both at local banks and abroad. Opening a business bank account in Uruguay usually requires full corporate documentation, identification of partners, directors and beneficial owners, a sworn statement on the source of funds and, in some cases, a business plan or projections. The process can take between one and four weeks depending on the bank and the client’s profile. For more details, see our guide to opening a business bank account in Uruguay.

Many companies that invoice the United States choose to open a US bank account from Uruguay, which makes collection easier by reducing international transfer costs, speeding up crediting times and giving the client a receiving account within the US banking system. Digital banks and fintechs such as Wise, Payoneer and Mercury allow foreign companies to open dollar accounts with US routing and account numbers, 100% online. This option is usually faster and cheaper than opening an account at a traditional US bank, although it has limitations (not all accept Uruguayan companies, and there may be restrictions on amounts or types of transactions). Another option is to open a bank account in Puerto Rico from Uruguay, which offers access to the US banking system with, in some cases, more flexible rules for non-residents.