Argentina VAT rates and VAT compliance
VAT rates in Argentina
The standard rate of VAT / IVA is 21%.
There is also a special high rate of 27% applied to telecoms, domestic gas supplies, water and industrial energy users. A reduced rate of 10.5% is applicable to a range of goods and services such as the provision of meat, fruit and vegetables, agricultural services, passenger transport, residential housing construction, certain medical services, books, newspapers and periodicals. There are exemptions in certain circumstances such as residential housing/farm leasing, passenger transport, medical services, education, public entity services and water, bread & milk.
The local provencial IIBB rates vary, the averages are:
- Commercial services: up to 4.5%
- Industry and goods: up to 3%
- Others: up to 6%
- There is a long list of supplies which are exempt or nil rated for IIBB.
|Rate||Type||Which goods or services|
|27%||Higher||Supply of telecoms, water, electricity and gas not used exclusively in a dwelling|
|21%||Standard||All other taxable goods and services|
|10.5%||Reduced||Medical; much construction work; fruit, pulses, vegetables and meat; public and taxi transport. Reduced VAT rate applies to certain electronic goods produced in the Tierra del Fuego Special Economic Zone|
|2.5%||Reduced||Import or supply of certain printed or digital newspapers and magazines; advertising services to certain printed or digital newspapers and magazines|
Argentinian VAT compliance
There are detailed rules controlling the recording and processing of Argentinian transactions. These include guidelines on:
- Argentinian invoice requirements;
- Foreign currency reporting and translation;
- Credit notes and corrections; and
- What accounting records must be maintained.
Most business –related expenses are deductible. However, hotel accommodation and car parking costs are generally not. Companies may request refunds of overpaid VAT (VAT credits) or carry it forward to future return periods.
Argentinian VAT returns
Monthly VAT returns must be submitted by all companies with an Argentinian VAT number, detailing all taxable supplies (sales) and inputs (costs). Returns are due between the 12th and 22nd of the month following the period end. Payments must be made in Argentinian pesos. VAT/IVA may be used to offset outstanding withholding tax or other national taxes.
VAT / IVA refunds in Argentina
There is no facility for a non-resident company to obtain a VAT refund on expenses in Argentina, even in the case where the non-resident company has made no taxable supplies in Argentina.