Taxpayers that produce audiovisual content may qualify for a tax credit for the value-added tax (VAT) paid on the goods and services used in producing the content.

Uruguay's Executive Power issued Decree No. 297/019, establishing a VAT credit for audiovisual content production.

The decree defines "audiovisual content" as works that are expressed as moving images of any duration, that can be incorporated into any media (e.g., television productions) or turned into a final product, such as a feature film, short film, series or documentary.

Taxpayers may claim the tax credit for the VAT paid on the goods and services necessary to produce the audiovisual content. They will receive the credit in the form of credit certificates issued under the same regime under which exporters operate. The Tax Office will determine the conditions under which the credit certificates will be issued. To claim the credit, the taxpayers must (1) be registered in the National Cinema and Audiovisual Directorate; (2) be up to date with contractual labor obligations; and (3) show the audiovisual content to the public.

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