VAT in Argentina guide

Argentina VAT for digital service providers

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.

As per current rules, digital services received by established VAT-registered taxpayers have to apply the reverse-charge mechanism. For digital services received by Argentine individuals (i.e., non taxpayers), such services are subject to VAT in Argentina when rendered by foreign parties where the effective use of the services is conducted in Argentina.

List of digital services that are the subject of Argentina VAT

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 rates

In Argentina, the following four rates of VAT apply:

• Standard rate: 21%;
• Reduced rate: 10.5%;
• Increased rate: 27%;
• Zero rate (0%);
• Specific rates applicable to taxpayers engaged in certain publishing activities (not exceeding certain sales thresholds): 2.5%/5%.

Late – registration penalties

A person that has not yet been registered for VAT with tax authorities cannot perform commercial activities of any kind. Penalties and interest are assessed for late registration or payment, such as when a person developed a commercial activity before registering and paying. Penalties also apply to VAT fraud.