On 7 October 2026, Uruguay’s Directorate General of Taxation (DGI) announced the commencement of nationwide tax audit operations targeting compliance risks across all sectors. The initiative, framed as “acciones de gestión de cumplimiento,” focuses on three core areas: systematic underreporting of sales revenue (subvaluación de ventas), improper use of simplified tax regimes for small taxpayers, and random spot checks to deter evasion. The DGI stated that these actions are part of its strategic plan to enhance voluntary compliance and reduce the tax gap, leveraging data analytics and cross-referencing of electronic invoicing records. The audits will be conducted by mobile teams deployed throughout the country, with powers to request documentation, conduct on-site inspections, and verify inventory levels against declared turnover. The legal basis for these actions derives from the Tax Code (Código Tributario) and the DGI’s regulatory powers under Decree 142/007, which authorize the tax administration to conduct verification and investigation procedures to ensure correct tax determination. The operation is expected to run through the remainder of the fiscal year, with preliminary results to be published in the DGI’s annual compliance report.
Key Takeaways
- Targeted Risk Areas: The DGI is prioritizing detection of sales undervaluation, a common tactic where businesses declare lower revenues to reduce VAT and income tax liabilities. The tax authority will compare electronic invoicing data with bank deposits, customs records, and third-party information to identify discrepancies. Taxpayers found to have underreported sales face adjustments of omitted taxes plus interest and fines of up to 200% of the omitted tax under Article 68 of the Tax Code.
- Small Taxpayer Regime Abuse: A significant focus is on taxpayers incorrectly classified under the “Monotributo” or simplified regimes. The DGI will verify eligibility criteria, including revenue thresholds and activity types, to prevent larger entities from benefiting from reduced compliance burdens. Entities found to have exceeded the revenue ceiling for the simplified regime will be reclassified to the general regime retroactively, with liability for the difference in tax plus penalties.
- Randomized Compliance Checks: In addition to risk-based selection, the DGI will conduct random audits to maintain a deterrence effect across the taxpayer base. Selected taxpayers will receive formal notification and are required to cooperate within statutory deadlines, with penalties for obstruction. The random selection methodology uses algorithmic sampling based on industry codes and geographic distribution to ensure broad coverage.
- Electronic Invoicing as Audit Trail: The DGI’s reliance on the mandatory electronic invoicing system (e-Factura) enables real-time cross-checking of transactions. Taxpayers must ensure their e-invoicing records are complete, accurate, and retained for the statutory period of ten years. Discrepancies between issued e-invoices and reported revenue will trigger automatic audit flags.
- Practical Implications for Businesses: Companies operating in Uruguay should immediately review their sales recording processes, ensure proper classification under the correct tax regime, and maintain organized documentation to respond to audit requests within the 10-business-day standard response period. Engaging tax advisors to conduct a pre-audit health check is recommended to mitigate exposure.
Practical Guidance
- Document Retention: Ensure all source documents, including invoices, contracts, bank statements, and inventory records, are systematically archived and easily retrievable for the required ten-year period.
- Regime Eligibility Review: Conduct an internal assessment of your company’s classification under the simplified tax regimes. Verify that annual revenues remain within the prescribed thresholds and that the nature of activities matches the regime’s permitted scope.
- Voluntary Disclosure Consideration: If discrepancies are identified, evaluate the benefits of voluntary disclosure before the DGI initiates formal proceedings. Early regularization can significantly reduce penalties and interest.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement