Uruguay Tax Agency Posts Consultation Clarifying VAT Exemption for Agricultural Machinery

The Uruguayan General Directorate of Taxation Feb. 4 posted online Consultation No. 6763, clarifying the VAT exemption for agricultural machinery. The taxpayer, a forest services provider, purchased a bulldozer to use exclusively in forestry activity. The seller included VAT on the invoice. The taxpayer inquired whether the bulldozer qualified for the agricultural machinery exemption under Resolution No. 305/979. The consultation clarifies that: 1) bulldozers are a type of tractor that can be used in various activities, such as demolition, earthmoving, and the leveling and grading of land; 2) bulldozers, therefore, aren’t exempt agricultural machinery under the resolution because they aren’t ...