Argentinian VAT on e-services

The Argentine Revenue Service has implemented a VAT withholding levy on digital services provided to its consumers by non-resident providers from 27 June 2018. The extension of Argentinian VAT to e-services is contained within General Resolution No 4240/2018.

Definition of Argentinian digital services

The Resolution defines taxable e-services to include the following:

Streaming or download music, video or games
Web services
Online advertising
SaaS (Software as a Service)
Data storage

VAT withholding by credit card or other payment agents

Under this legislation, a deduction equivalent to the standard VAT rate must be withheld by the payment agent from the consumer’s payment to the foreign digital services’ providers. This will be done by the credit card, collection agent or similar payment provider.

VAT is levied at the following times:

1. Time of the transaction on debit cards;
2. Monthly statement end on credit cards; or
3. Point on money transfers for other payment providers

The implementing Resolution continues a list of approved, payment companies. This list is updated on a monthly basis. Providers are liable to remit, on a monthly basis, any VAT collected via the SICORE payments system.

If no Argentinian payment intermediary is involved, it is the consumer’s responsibility to declare and pay the VAT.

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