Uruguay is following Colombia, Argentina and Brazil in considering legislative changes to enable the taxing of over-the-top (OTT) players such as Netflix.

The changes will allow the country to tax players which deliver Internet services in Uruguay, regardless of where they are based. According to an analysis of the daily El Observador, only companies legally established in the country are currently charged income tax and VAT.
The new taxing model is likely to be based on credit card activity, as has been done in Colombia since the beginning of the year and has recently been announced in Argentina. In fact, Colombia’s tax reform was seen as a pioneering move at the time, and one that would rapidly spread across the region.
Other big Latin American markets, such as Brazil, as well as smaller ones, like Paraguay, are also considering taxing OTT players.
A change in taxing regulations has been long-demanded by both regional telcos and content providers to even out competitive conditions in the market.