Published and draft legislation - Uruguay

Acceptance of online payment in small business

Draft Law

This Bill is part of the set of reforms the Uruguay government has been implementing since 2005 to promote financial inclusion in the country. It is one of several measures designed to encourage more use of online payments in small stores.

In the current context, merchants with annual revenues of below 305,000 Indexed Units (equivalent to 33,955 USD aprox)are taxed under special regimes: (i) the simplified regime (ii) single-tax regime or (iii) MIDES social single-tax*.  The Bill proposes that revenues generated by sales paid online should be partially eligible for the applicable tax base, so that merchants are not applied a more onerous tax regimes simply for accepting such online payments.

The initiative provides for a gradual, progressive transition between tax regimes, which will help to encourage the transformation of payment systems and give an incentive to small merchants in Uruguay to move into the formal economy.

* This is a single tax paid by members of households below the poverty line or deemed to be in a vulnerable social situation, producing and/or trading in any kinds of goods or services  (Law 18 .874, 23rd December 2011).