Argentina-VAT

Proposed VAT Reform - May 2025

 

The Government of Argentina is aiming to simplify the tax system by placing more power for levying taxes within the provinces. This includes a proposed "Super VAT" whereby the current VAT rate would be split between the federal Government (9%) and the provinces would be allowed to set their own rates between the 9% federal Gov't rate up to the 21%​ rate. 

​

Current VAT 

​

The current general rate of  VAT in Argentina is 21% and is applied on the sales value of products and services (including professional services), with a few specific exceptions.

 

This tax is applicable to imports of goods and services (services rendered abroad and used or exploited in Argentina). The tax paid on imports can be taken as VAT credit.

 

Certain goods are taxed at a reduced rate of 10.5%, for example, works on real estate for housing, services related to agriculture, operations of certain capital goods and food.

 

Beside, some services taxed at 27%, for example, gas, energy and telephone services.

 

​

Reverse Charge VAT As a result of the 2017 tax reform, VAT legislation currently includes ‘digital transactions' (e.g. digital services, hosting, on-line technical support, software services, Internet services) provided from abroad as a taxable event. Hence, these types of services are now subject to VAT at a 21% rate if they are provided by a non-resident entity to an Argentine final customer, on condition that they are actually used in Argentina.

 

Exports of goods and services (services rendered in Argentina and used or exploited abroad) are taxed at 0%, which implies that input VAT (VAT credit on purchases of goods and services) related to exports may either be used as a credit against output VAT or refunded pursuant to a special procedure. VAT paid on purchases, final imports and rental of automobiles, not considered as inventory, may not be computed by the purchaser as a credit. The same tax treatment applies to other services, such as those provided by restaurants, hotels and garages. The above-mentioned restrictions do not apply when the engagement of these services is for a conference, congress, convention or any other similar event directly related to the specific activity of the contracting party.

​

Source - Argentine Tax Authority

 

​

 

​​​