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VAT Registration in Argentina

VAT Registration in Argentina

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 2022 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 2022

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 2022?

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 in 2022 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.

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.

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. But just like in any business, VAT is 21% and must be found on the invoice issued to customers. 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.

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:

  1. The total FDI stock registered in 2019 in Argentina surpassed USD 69 billion.
  2. In matters of simplified business formalities, Argentina ranked 126th out of 190 worldwide countries, according to the 2020 Doing Business report.
  3. Spain, USA, and the Netherlands are top investors in Argentina.
  4. 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 2022? We invite you to contact our law firm in Argentina and discover the legal services we can provide.