Since Temu landed in Uruguay in 2024, it has forever changed the way Uruguayans shop online. If you're one of those who take advantage of franchises to import products from abroad, pay attention: Yamandú Orsi's government plans to regulate the phenomenon with a new tax that directly targets the explosive growth of this type of operation.
The Temu Effect: Record Growth in Online Shopping
In just one year, Temu—the Chinese e-commerce app—has skyrocketed use of its tax-free exemption scheme. This allows anyone over the age of 18 to make three annual purchases abroad, up to US$200 and 20 kilos each.
Before Temu, there were approximately 220,000 users of this benefit each year. Today, the number exceeds 650,000. The leap is staggering: in May 2025 alone, more than 200,000 packages arrived in Uruguay. That's 214% more than a year ago.
This represents a significant pressure on both domestic trade and tax collection. Therefore, the Ministry of Economy and Finance (MEF) decided to take action.
The “Temu Tax” is born: what it consists of
Economy Minister Gabriel Oddone confirmed yesterday that the government will include a new tax on these types of purchases in the budget bill. The goal is to "equalize the tax treatment of final purchases" by applying a 22% VAT rate to orders made outside the country.
But it won't apply equally to everyone. Purchases consolidated in the United States—for legal reasons linked to the TIFA Agreement between Uruguay and the United States—will be exempt from the new tax. This means that, in practice, it is a tax focused on platforms like Temu, which operate from Asia or Latin America.
A balance between consumers and merchants
According to Oddone, the government is seeking a measure that responds to the demands of local merchants—who feel at a clear disadvantage compared to unbeatable prices abroad—without severely impacting consumers.
To this end, an increase in the maximum allowable limit on franchise purchases is planned. It currently stands at US$200 per shipment, and could be increased (although the amount was not specified). Also being considered is allowing split purchases, enabling larger transactions. This would allow, for example, grouping multiple purchases into a single delivery, avoiding multiplying costs.
The political message is clear: there will be a tax to protect competition, but also an increase in benefits to protect your wallet.
What changes for you?
If you shop on platforms like Temu, Shein, or Aliexpress and don't use a US-based mailbox, your shipments could be subject to VAT if this change is approved. In turn, if the US$200 limit is raised, you'll have more room to take advantage of your annual allowances.
Bottom line: You'll pay more for some shipping, but you could also buy more and better.
Local commerce vs. digital globalization
The Temu phenomenon highlights a growing tension: on the one hand, digital globalization gives Uruguayan consumers access to cheaper and more varied products. On the other, local businesses are suffering the impact of competing against untaxed giants.
The "Temu Tax" appears as a way to regulate this imbalance. It's not just about collecting revenue: it's about defining how Uruguay plays a role in the new global trade landscape.
