The standard VAT rate in Argentina is 21%, but there is also a higher rate of this tax, of 27%, which applies to the services offered by the suppliers of gas, energy, water, and mobile telephony. Discover in this article how the registration of VAT in Argentina in 2024 of local and international companies is done. Legal support and advice in this direction can be provided by our lawyers in Argentina.
| Quick Facts | |
|---|---|
| We offer VAT registration services | Yes |
|
Standard rate |
21% |
|
Lower rates |
– 10.5% for medical services, public and taxi transport, fruits and vegetables, – 2.5% for certain printed or digital newspapers, certain advertising services |
| Who needs VAT registration | Companies with taxable activities in Argentina |
| VAT for real estate transactions |
15% for sale of real estate properties |
| Exemptions available |
For: – professional and personal services, – construction utilities, – export of goods and services |
| Period for filing |
Monthly |
| VAT returns support |
Yes |
| VAT refund | Not available |
| Who collects the VAT |
– retailers, – manufacturers, – wholesalers |
| Documents for VAT registration |
– certificate of incorporation, – proof of company establishment, – standard forms |
| VAT number format |
VAT/IVA followed by 11 digits |
| VAT de-registration situations |
When companies close their operations |
Argentinian VAT registration for a foreign company
Foreign companies must register for VAT at the very moment of starting their activities. What is important to mention is the fact that Argentinian VAT registration is also accepted for a foreign company without local establishment or company formation in this country. Let’s review some of the most important formalities to keep in mind if you are interested in Argentinian VAT registration for a foreign company:
- The obligation for VAT registration in Argentina applies to companies that deal with products traded/delivered on the territory of Argentina, but also with imports into this country.
- ARS 300,000 is the threshold for goods for sale purposes while ARS 200,000 is for services. There is no threshold for digital services offered for sale in Argentina.
- In Argentina, it is not allowed to register for VAT purposes without first forming a company.
- Company documents are required, namely Articles of Association and VAT Certificate from the country of origin.
- There is no obligation for a fiscal representative to register for VAT in Argentina, however, it is recommended to appoint such a specialist to take care of the formalities from a tax point of view.
Considering the details above, you can get an idea about Argentinian VAT registration for a foreign company. Our lawyers in Argentina can help you with all the formalities before starting business activities in this country.
VAT registration for a local company in Argentina in 2024
Companies with economic activities in Argentina must comply with the tax rules in this country. This is also available for VAT, one of the most important taxes imposed, for which the registration process is quite simple. Here are a few steps on how to register for VAT in Argentina:
- First of all, the company must have a permanent establishment in Argentina, in order to have a VAT code. This is the main condition to keep in mind when opening a business in this country.
- Company documents, such as the Certificate of Incorporation must be submitted to the relevant authorities, in copy and original. One of our Argentinian lawyers can offer you the necessary support for drawing up the documents.
- The Argentinian financial authorities require the completion of specific forms for the registration of VAT in Argentina. Here also you can benefit from legal help provided by our specialists.
- Once the documents are accepted, a VAT code will be issued to companies with economic activities in Argentina.
What are the VAT rates in Argentina in 2024?
The standard VAT rate of 21% applies to most goods and services offered for sale purposes in Argentina. However, there are also lower VAT rates, as follows:
- Meat, fruits, vegetables, bread, and milk are subject to a 10.5% VAT rate.
- A part of the medical services offered in Argentina, together with agricultural services, education, passenger transport, magazines, and newspapers are taxed with the same VAT rate, respectively 10.5%.
- The import of printed and/or digital newspapers, plus advertising services in this field are subject to a reduced VAT rate of 2.5%.
- There is no VAT for exports in Argentina.
The 10.5% VAT rate also applies to the supply of advertising and publicity in some situations, medical assistance, housing construction, and sales and imports of bovine animals. The same rates apply to specific capital goods.
In Argentina, a specific VAT regime applies for auto rentals and/or final imports. Such purchases are considered as inventory and cannot be calculated by the buyer as a VAT credit. The same tax treatment can apply to other services in Argentina, like the ones offered by hotels, restaurants, and garages, for example.
One of our Argentinian lawyers can tell you more about the VAT in Argentina and the rates imposed in 2024 for varied goods and services available for sale purposes. We have experts who can provide essential legal advice for international entrepreneurs who want to start a business in Argentina.
Have you decided to apply for a residence permit in Argentina? Our advice is to collaborate with our team of lawyers to know exactly what you need to prepare and what steps are necessary to follow in this endeavor. People who decide to relocate to this country have many basic reasons. For example, students can benefit from specialized courses and various opportunities. Standards of living, costs, and quality of life can also be taken into account before relocating and obtaining a residence permit.
What is the VAT threshold in Argentina?
The VAT threshold in Argentina is set at ARS 300,000 for goods available for sale purposes, and ARS 200,000 for a wide range of services. You can discuss more on this topic with our Argentinian attorneys with experience in tax compliance. Also, those interested in opening a company in Argentina can ask for a free case evaluation and enjoy personalized offers tailored to their business needs.
VAT registration is voluntary for foreign businesses established in Argentina and offering digital products and services. Such companies are legally required to collect and remit the VAT on the sales.
Argentina citizenship can be obtained with specialized help offered by one of our local lawyers. In case of application implying descent, the birth certificates will be requested. There are other formalities that you should take into account in order to obtain this status in the shortest possible time, but all legal aspects can be explained in detail by our specialists. We, therefore, invite you to contact us and discover the legal services offered.
VAT compliance in Argentina
All financial transactions of the companies must be registered, according to the laws of Argentina. This includes the VAT, an important tax imposed on most consumer goods and services. Therefore, any fiscal receipt or bill must also contain details about the imposed VAT. Regarding the internal documents of a company with economic activities in Argentina, these should also contain notifications regarding the VAT corrections, where applicable.
All companies registered for VAT purposes in Argentina are obliged to use electronic invoices. As such, the business owners must first apply for this regime, and obtain authorization from the tax authorities in Argentina. Once accepted, the tax authorities can assign an Electronic Authorization Code or CAE which must be incorporated in any electronic invoice issued.
The content of a VAT invoice in Argentina
Once you have registered your company for VAT purposes in Argentina, you can issue invoices for the goods and services offered for sale. Such an invoice must include the following information:
- Company name and business address in Argentina.
- The company’s unique number is also found on the Certificate of Incorporation.
- VAT number issued by the relevant authorities.
- Description of the goods and/or services offered for sale.
- Issued invoice number.
- The price without VAT, as well as the price with VAT included.
- Total amount due.
A company that offers goods and services for sale in Argentina must set up the invoicing system once the activities begin. This can be done with dedicated software and programs containing all the company’s data, automatically generating the respective invoices. We remind you of the support of our local specialists, with experience in fiscal matters, so do not hesitate to contact us.
VAT for digital products in Argentina
Regarding digital products for sale in Argentina, VAT is imposed depending on the number of sales registered in the country and the type of business, whether B2B or B2C. Thus, there is no threshold for VAT registration in Argentina if you sell such products.
Digital transactions in Argentina have been subject to a 21% VAT rate, since 2017. This includes internet services, software, technical support online, and other digital services. This rule applies to services supplied by non-resident entities to customers in Argentina.
We specify that in the case of services provided to another business or company, the latter can apply for the reverse-charge mechanism in terms of VAT, and therefore, there is no need to collect it from the respective client.
If you are interested in more information about this subject, we recommend that you get in touch with one of our local lawyers in Argentina and discover the legal services offered in this regard.
The same tax reform made in 2017 tax imposed an expedient VAT recovery mechanism for VAT credit balances on specific investments in capital goods, and infrastructure This implicates companies that have not been able to recover the VAT within 6 months.
Do you want to immigrate to Argentina? Do you want to know what the formalities are for obtaining a visa and residence permit? Then you can contact one of our lawyers with experience in the field of immigration. It is much more recommended to benefit from legal support than to act on your own because in this way you will not have rejections or incomplete documents. But you can find out more about the support provided in this matter if you contact us by phone or online.
VAT returns in Argentina
According to the legislation in force in Argentina, VAT returns must be submitted every month. These should include detailed information about each transaction, sales, costs, exits, and returns, where applicable. It is good to know that VAT returns can be prepared and submitted with the help of our specialists, to avoid possible errors that may occur along the way.
In terms of investments in Argentina, the country offers many opportunities, both for local and foreign entrepreneurs, in a stable business climate. Here are some statistics that highlight the economic direction of Argentina:
- The total FDI stock registered in 2019 in Argentina surpassed USD 69 billion.
- In matters of simplified business formalities, Argentina ranked 126th out of 190 worldwide countries, according to the 2020 Doing Business report.
- Spain, USA, and the Netherlands are top investors in Argentina.
- The manufacturing sector absorbs most of the FDIs in Argentina, with around a 35% rate in 2016.
Interested in detailed information about the VAT in Argentina in 2024? We invite you to contact our law firm in Argentina and discover the legal services we can provide.