Monotributo vs minimum VAT in Uruguay: key differences

Both regimes simplify obligations for small activities, but they have different rules and are not interchangeable. Revenue alone is not enough to choose between them.

Monotributo

• Limited to admitted activities and qualifying conditions.
• Restrictions may apply to customers, assets, premises and employees.
• Payments combine tax and social-security components depending on the case.

Minimum VAT / Small Business

• Designed for small-scale business activity.
• Has an annual income ceiling and an annually updated DGI amount.
• Electronic invoicing may cap the monthly amount at 3.3% of income when lower.

What if I sell my own services?

For personal services outside employment, check Personal Services VAT and IRPF first. The correct classification starts with what you do, how you do it and who you invoice.