0% VAT instead of 22% - VAT exemption for international productions and co-productions
Committed to boosting the audiovisual industry, back in 2005 the government of Uruguay introduced a tax benefit which consists of the VAT exemption (IVA, 22%) pursuant to the dispositions of Decree 220/998.
Within the frame of this program, production expenditures for projects filmed in Uruguay to be consumed abroad may be exempted from paying VAT.
VAT exemption is available for all types of audiovisual contents including -but not limited to- feature films, short films, videoclips, animations, documentaries, TV productions and series for all types of media distribution services such as TV, OTT, theatrical releases, etc.
Commercials and advertising films are also covered when the production company has a VAT exemption certificate issued by the I.C.A.U. (The Uruguayan Institute of Film and Audiovisual).
Eligible expenditures include:
(but are not limited to)
- Catering services
- Crew during pre-production, production and post-production
- Data management services, Internet connections, cloud services for storage of camera original films, post-production, VFX and audio files
- Image and audio editing
- Post-production services
- Insurance coverage
- Production of animations and visual effects
- Rental of props
- Rental of locations and stages
- Rental of post-production equipment
- Rental of technical equipment
- Rental of set costumes
- Set design and construction services
- Visual effects