Argentina VAT

Argentina introduced value added tax (VAT), known locally as Impuesto al Valor Agregado (IVA), in 1975. This system replaced previous national and provincial sales taxes to streamline tax collection and reduce economic distortions.

The Federal Administration of Public Revenues (Administración Federal de Ingresos Públicos, or AFIP) administers VAT at the national level.

Additionally, each of Argentina’s 23 provinces and the autonomous city of Buenos Aires impose a separate gross income tax (impuesto sobre los ingresos brutos, or IIBB), which is managed by their respective tax authorities.

All non-resident businesses conducting taxable business in Argentina are required to register for VAT from the first transaction. Resident businesses, however, are allowed VAT registration thresholds of ARS 300,000 for goods and ARS 200,000 for services.

Foreign businesses are typically required to register for VAT in Argentina if they engage in any of the following activities:

• Importing goods into Argentina

• Selling goods within Argentina

• Providing digital services to Argentine consumers

• Holding inventory in Argentina

• Organising events or exhibitions in Argentina

  
  

The reverse charge mechanism applies to certain B2B services provided by non-residents, shifting the VAT liability to the Argentine recipient.

It’s important for foreign businesses to assess their activities in Argentina to determine VAT obligations. Compliance with local VAT laws helps to ensure smooth operations and avoid potential penalties.