Argentina VAT Compliance: An Overview for Businesses
Doing business in Argentina means meeting your tax compliance obligations. Adhering to requirements from multiple mandates, including both VAT and electronic invoicing, can be demanding for organisations.
This page serves as an overview of tax obligations in Argentina, helping you to understand your obligations – both now and as things change in the future.
Table of contents
1. General VAT information for Argentina
- Argentina e-invoicing
- Digital VAT Book
3. Requirements to register for VAT in Argentina
4. When does VAT liability apply in Argentina?
5. Invoicing requirements in Argentina
6. Penalties for non-compliance with VAT in Argentina
There’s plenty to know about Argentina’s VAT regime, also known as Impuesto al Valor Agregado (IVA).
| Periodic VAT return | Monthly Between the 12th and 22nd of the month following the end of the tax period |
| VAT rates | 21% (standard) 27% 10.5% 2.5% |
VAT rules in Argentina
Argentina e-invoicing
Currently, if the taxpayer is unable to issue the receipts outside the electronic issuance system due to force majeure or circumstances beyond their control, they must issue a return on a certain date with the payment receipts, credit notes and debit notes issued without using the Electronic Issuance System (SEE). Read more.
Digital VAT Book
In addition to VAT and e-invoicing, taxpayers should be mindful of another declaration: the Digital VAT Book. Implemented in 2019, this obligation requires organisations to electronically record and register the following:
- Sales
- Purchases
- Assignments
- Imports and exports
This regime requires taxpayers to register their operations electronically through the PORTAL IVA service.
Requirements to register for VAT in Argentina
Argentina treats goods and digital services differently when considering VAT.
In June 2018, Argentina introduced a VAT withholding levy on digital services provided to domestic consumers by foreign companies and providers.
Argentina’s General Resolution No. 4240/2018 defines the following to be taxable digital services:
- Data storage
- Online advertisement
- Software as a Service (SaaS)
- Streaming music, videos or games
- Web services
The resolution requires a deduction equivalent to the standard VAT rate (21%) be withheld from the buyer’s payment, by the payment agent. VAT is levied either:
- On debit cards: At the time of the transaction
- On credit cards: At the end of the month
- Other payment providers: At the point money is transferred
When does VAT liability apply in Argentina?
In Argentina, VAT applies to the sales value of products, most services and the import of goods and services. However, there are some exceptions.
VAT is paid by filing monthly tax returns, and the standard VAT rate is 21%. Certain goods and services qualify for special rates of 27% or 10.5%.
Invoicing requirements in Argentina
The first requirement for issuing electronic invoices in Argentina is that taxpayers must be registered with the AFIP (Administración Federal de Ingresos Públicos) and request an Electronic Authorisation Code (C.A.E.) from the tax authorities.
E-invoices must include a QR code, encompassing identification data and specific details – including:
- Issuance data
- Invoice number
- Total amount
- Billing currency and exchange rate
- Authorisation type and code
Penalties for non-compliance with VAT in Argentina
Argentina penalises taxpayers who fail to meet their VAT obligations.
For those who fail to pay the VAT they owe, the penalty will be 100% of the amount owed. Those engaging in fraudulent activities may face fines ranging from two to six times the amount of tax owed—and even imprisonment in extreme cases.
FAQ
What is the VAT rate in Argentina?
The standard VAT rate in Argentina is 21%, though special rates of 27% and 10.5% apply to specific items.
What items are VAT exempt in Argentina?
In Argentina, the following are exempt from VAT:
The sale of:
- Books
- Common bread
- Medicine
- Milk
- Natural water
- Postage stamps
- Ships acquired by the government
The supply of:
- Cultural services by religious institutions
- Education provided by private institutions
- Local and international transport
- Medical care
- Services by the government and public institutions
- Tickets for arts and sports
- Transportation in vehicles specially designed for sick or injured persons
Can I withhold VAT in Argentina?
Argentina’s VAT withholding regime applies to operations that, by their nature, may give rise to the generation of tax credits, such as the purchase and sale of movable things and the provision of services.
Depending on the operation’s characteristics, withholdings can be 50%, 80% or 100% of the VAT established on the invoice.
How to reclaim VAT in Argentina?
When leaving Argentina, taxpayers can visit any customs office to submit their invoices and purchases. Valid invoices will be refunded via stamped forms.
Can non-residents recover VAT in Argentina?
No, non-resident companies are not eligible to receive a VAT refund on their expenses in Argentina. This is even applicable where the non-resident has made zero taxable supplies in the company.
Do I need a fiscal representative in Argentina?
Argentina’s tax authorities do not require foreign taxpayers to appoint a fiscal representative when setting up a company in the country.
What is the VAT threshold in Argentina?
For taxpayers trading in Argentina, the VAT registration threshold is ARS 300,000 for goods and ARS 200,000 for services.
What are the submission and payment deadlines in Argentina for VAT?
Returns are due between the 12th and 22nd of the month following the period end, made in Argentinian pesos.
What is a VAT number in Argentina?
VAT numbers are issued to registered taxpayers, used by the tax authorities to identify and verify natural and legal entities. Argentina’s code is named Clave Única de Identificación Tributaria (CUIT) and typically follows this format: 30-12345678-1.
Solutions for VAT compliance in Argentina
Complying with your tax obligations in Argentina can be taxing on your resources – especially if you run an international organization. There are numerous mandates to consider, and they change over time, so keeping up with your requirements is just as important as meeting them in the present.
This is where Sovos steps in. Blending local expertise with global coverage, Sovos’ solutions and experts can take on your tax burden to ensure you are compliant everywhere you do business. Your compliance is our concern.