VAT Registration in Argentina - We Assist International Investors
VAT Registration in ArgentinaUpdated on Saturday 17th July 2021
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VAT (IVA) is a very important tax in Argentina that brings consistent revenues to the state budget. 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, mobile telephony. Discover in this article how the registration of VAT in Argentina of local and international companies is done. Legal support and advice in this direction can be provided by our lawyers in Argentina.
What are the VAT rates in Argentina?
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.
One of our Argentinian lawyers can tell you more about the VAT in Argentina and the rates imposed 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.
How is the VAT registration made in Argentina?
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 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 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.
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? We invite you to contact our law firm in Argentina and discover the legal services we can provide.