International VAT Guides – Argentina

VAT rates in Argentina 

How much is VAT in Argentina? 

The Argentina VAT  regime is an exemplary picture of a highly modern indirect tax framework. Although it’s very robust, considering the number of taxable persons and stakeholders involved, it maintains its modernity and the perseverance of regulators in promoting stable modernization and digitalization. 

VAT threshold in Argentina 

Taking into consideration the latest VAT Argentina provisions, there is no registration threshold for persons who make taxable supplies of goods or services, or import goods. Foreign taxable persons with a permanent establishment in the country are required to register for IVA Argentina from the first sale made in the country. 

There are no mandatory requirements for registration of non-resident providers of digital services. There is no VAT threshold in Argentina for digital platforms. 

VAT Taxable Activities in Argentina

Types of taxable activities that trigger mandatory VAT registration:

• Supply of goods and services for consideration;
• Services performed abroad are enjoyed in the country
• Imports of goods and services; 
• Overseas sales of low-value goods to customers in Argentina
• Provision of digital services to customers in Argentina

Tax Representative in Argentina 

Non-resident taxable persons who wish to register and collect Argentina IVA should engage the services of a local tax representative. 

Tax registration 

Standard Registration 

The persons that are seen by the eyes of the law as the taxable persons, such as suppliers of taxable goods, importers, recipients of services performed abroad but used in the country, shall be responsible for collecting and remitting VAT. 

Collectors of VAT are local payment service providers or other financial institutions that are formally informed by the tax authorities as the persons responsible for collecting and remitting VAT on the underlying supplies of services performed by non-resident service providers. 

Simplified tax registration 

The Argentine tax authorities have yet to develop simplified tax registration procedures for non-resident providers of digital services. 

VAT on Electronically Supplied Services in Argentina 

Digital Services

Argentine tax authorities have developed a quite different tax framework for the collection of VAT on the supplies of digital services made by non-resident providers. As of 2018, under Resolution General 4240/2018, local Payment Service Providers (PSPs), such as banks, credit, or debit card financial issuers, acted as tax collection and remittance agents. 

They withheld 21% VAT on digital services sold by non-resident providers to Argentine consumers. Non-resident suppliers were not required to register for VAT.

In the years to come, Argentine tax authorities are expected to publish a list of non-resident digital service providers for whom local payment service intermediaries will be required to collect and remit VAT. This prescribed list has been continuously updated to address the fact that tax authorities are closely monitoring the significant economic presence of foreign providers. 

In the cases where the non-resident provider of digital services isn’t on the list, the local customer is obligated to collect and remit the tax through a prescribed electronic form. 

Along with the collection and remittance of VAT, payment service providers that intermediate with the payments for local digital service providers have an additional responsibility to withhold income tax and remit it. This depends on the tax status of the provider. 

The tax collection and remittance framework has changed following the adoption of Resolution No. 780/24 (MECON), which took effect on September 1, 2024. This General Resolution repealed three previously adopted resolutions that, combined, defined the VAT and Income tax withholding frameworks for payment service providers. 

From September 1, 2024, payment services providers are only obliged to collect and remit VAT on the supplies made by non-resident digital services providers when instructed by tax authorities. In all other cases, the local customer is responsible for collecting and remitting taxes through the prescribed self-assessment procedure.

There is no obligation for non-resident providers of digital services to register for VAT. The only situation in which registration could be required is when tax authorities formally demand it. 

VAT Collection 

For B2C transactions, if a local PSP isn’t required to collect tax on the underlying transaction, the local customer is mandated to withhold and remit VAT in accordance with the self-assessment procedure for these transactions. 

For B2B – if PSP isn’t required to withhold tax, the local taxable person is responsible for tax collection and remittance under the reverse charge mechanism. 

How much is VAT in Argentina for Electronically Supplied Services?

 The VAT rate Argentina for most digital goods and services is 21%. However, this shouldn’t be followed blindly. There are different kinds of taxable supplies for which the IVA rate  Argentina differs. 

Taxable Digital Services in Argentina

The following types of digital services trigger mandatory VAT registration of non-resident providers:

• Audio and video streaming services 
• SaaS services
• E-books and publications 
• Travel arranging services

Marketplace and Digital Platform Operators Rules

In the cases where payments for digital services purchased from non-resident providers are transferred without the intermediation of the local service provider directly to the account of the provider, the recipient of the service is obliged to collect and remit the tax under the self-assessment tax procedure.

The General Resolution 5553/2024 AFIP eliminated the default tax collection and remittance obligation imposed on all transactions processed by local payment service providers. From the day when the Resolution came into force, the responsibility to collect and remit the tax, if not explicitly indicated differently, lies on the recipient of the service. 

Digital Platform operators, under the provisions of General Resolution 5319 (2023), became VAT withholding agents for sales made through their platforms by local vendors. However, this does not affect foreign direct sellers.

Even though VAT withholding has been lifted for PSPs, Gross Income Tax obligations at the provincial level still exist for those with a significant digital presence.

Invoicing Rules

A VAT-registered non-resident supplier of remote services isn’t obligated to issue a tax invoice to its customers. 

The minimum requirements of the invoice are the following: 

General information 

• Date of invoice issuance 
• Consecutive invoice numbering
• Authorization Code
• Invoice type specification
• Date and time of supply

Seller information

• Company name
• Full address(head office)
• Billing address if different from company address
•  VAT number

Customer information

• Name 
• Full address
• VAT number(if applicable)

Fiscal Information

• Tax amount for each type of goods or services supplied
• Net value per tax rate
• Distinct line of gross value per tax rate or tax-exempt supply
• Type of the transaction by reference to the categories indicated in the VAT Act 
• Total tax  amount 
• Invoice Total tax exclusive
• The rate of any discount
• Total invoice amount

Foreign Currency Invoice in Argentina  

In most cases, issuing an invoice in a foreign currency is permitted. However, VAT declarations should be submitted exclusively in the local currency.  

VAT Return in Argentina 

Standard Return 

Local businesses and foreign businesses with a permanent establishment in the country are obligated to follow the procedure for issuing the standard return in electronic format. 

VAT Return

Penalties for late reporting and omitted declarations 

Late VAT return filing, late VAT payment, and late registration are situations in which taxable persons are most likely to incur an obligation to pay a penalty and/or interest for not complying within the prescribed timeframe. 

• Late payment: penalty ranges from 1 to 3 times the amount due.
• Late filing: penalty amounts to ARS 200 per return for individuals and ARS 400 per return for companies.

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