The Uruguayan government has issued a new regulatory framework to mitigate economic disadvantages in areas bordering Brazil, where price differences affect both local trade and consumer prices. The decree, effective as of November 10, 2025, introduces tax incentives, customs facilities, exemptions from employer contributions, and a VAT reduction system for businesses and cooperatives located within a radius of up to 20 or 60 km from border crossings, depending on the case.
This new regulatory framework aims to improve competitiveness and strengthen the local border economy amid price differences with Brazil. To take full advantage of these benefits, companies must strictly comply with documentation requirements, traceability, import limits, and reporting procedures to the DGI and other entities involved.
Special border trade regime
Chapter 1 of the decree establishes a simplified customs regime that allows micro, small, and medium-sized enterprises to import goods exempt from taxes, including VAT and IMESI, provided that such imports are intended for retail sale in authorized border areas.
Eligible goods
Imports must meet specific conditions:
- Be new, unused, dry, and packaged for retail sale.
- Be accompanied by tax receipts from the country of origin.
- Enter through authorized border crossings.
Stay within annual quantitative limits based on company income:
| Annual income | Annual limit | Monthly limit |
| Hasta 305.000 UI | 100.000 UI | 10.000 UI |
| Hasta 1.500.000 UI | 360.000 UI | 36.000 UI |
| Hasta 3.500.000 UI | 600.000 UI | 60.000 UI |
Relevant prohibitions
The regime prohibits:
- The stockpiling of goods outside the declared commercial premises.
- The movement of products outside the border area.
- Wholesale sales.
Non-compliance may result in suspension for up to two years, and repeat offenses may result in permanent disqualification.
Exemption from employer pension contributions for new hires
In Chapter 2, the decree promotes formalization and employment by offering a 75% exemption from employer pension contributions for 12 months.
Conditions for access
Companies must:
- Have as their main business activities retail trade, manufacturing, accommodation services, leisure, and administrative support, among others, as detailed in the decree.
- Be located within a maximum radius of 60 km from the border crossings with Brazil.
The benefit applies only when the company hires new employees and exceeds the average employment level of the previous semester.
VAT reduction for sales in border areas
Chapter 3 introduces a key benefit of the regime: a reduced VAT rate for sales made by retailers within 20 km of the border.
Reduction scheme
The benefit operates as follows:
- 2 percentage points on the basic or minimum VAT rate, applying the provisions of Decree No. 203/014.
- A complementary reduction that allows the total reduction to be achieved through subsequent credits to beneficiaries made by the entities issuing payment instruments.
Eligible transactions include supermarkets, grocery stores, pharmacies, street food vendors, and other retail businesses as specified.
Conditions for accessing the VAT reduction
Transactions must simultaneously meet the following conditions:
- The amount of the transaction must not exceed UI 2,000.
- Delivery must take place at the commercial premises themselves.
- Purchasers must be end consumers and pay exclusively by debit or local electronic money instruments.
- The purchaser’s monthly transactions must not exceed UI 10,000.
Regime for consumer cooperatives
Cooperatives have specific rules, including the possibility of tax credits for the reduction applied to their members.
Documentation, information, and control requirements
The decree establishes a robust tax and operational control system under the responsibility of the General Tax Directorate (DGI), the National Customs Directorate, and payment instrument management companies.
Documentation required from beneficiary companies
Receipts must include:
- Document number.
- Total amount without reduction and reduced amount.
- Legend indicating that the transaction is part of the special regime.
Obligation to report
Payment instrument management companies must provide detailed information to issuing entities and the DGI, including:
- The merchant’s tax identification number (RUT).
- Transaction identifier.
- Total amount of the transaction.
Issuing entities, in turn, must report to the DGI transactions that benefit from the VAT reduction.
Communication to beneficiaries
Issuing entities must inform users of:
- Amount of the discount applied.
- Details of each transaction.
This must be done within 48 hours.
Additional provisions and transitional regime
The decree also incorporates:
- A fictitious complementary reduction regime for certain taxpayers (rate of 7.36%).
- Rules for foreign currency transactions.
- Provisions for transitional authorization by the DGI until April 2026.
Finally, an additional benefit is available to businesses located within 20 km of the border: a 100% tax credit on the cost of leasing POS terminals until December 2026.
In this context, having specialized advice on tax compliance, payroll management, transfer pricing, and customs processes becomes essential to maximize the benefits of the regime and ensure flawless operation within the legal framework.