Value-Added-Tax (VAT) is collected at every stage of the Manufacturing and Distribution process in Argentina at a standard rate of 21%. However, the quality is not the same for all goods and services, for example, Sales, Import of Sheep, Cattle, and under certain conditions, import of Fruits and Vegetables are charged VAT at a reduced rate of just 10.5%. While certain services, including the Telecommunication Services, Sewerage, Running Water, etc., are charged VAT at an increased rate of 27%.
Vat Calculator Argentina
Latest Argentinian VAT rates:
VAT is charged at different rates for different goods and services in Argentina. As of 2020, the VAT rates in Argentina are:
History of the Argentinian VAT:
Argentina was introduced to Value-Added-Tax (VAT) in 1974. It is known as Impeusto al Valor Agregado (IVA) at the Federal Leis. Each of the 23 Provinces, along with the Autonomous City of Buenos Aires, also operates Impuesto Sobre Los ingresos brutos (IIBA). It bears similarities to the European Union’s VAT system in the way it requires recalculation and payments to the Tax Authorities at each point of transaction in the onward sales chain. It is administered for the Public Revenues by the VAT Federal Administration. Learn more about Argentinian you can visit here
Argentinian Products that are subject to Reduced VAT:
Some Goods, Services, and Transactions are charged VAT at a reduced rate of 10.5%. These include:
- Residential Construction
- Interests and Other Personal Loans’ Costs granted by Financial Institutions
- Living Bovine Animals Sales and Imports
- Specific Cases of Publicity and Advertisements’ Cost
- Any Domestic Transportation not exceeding a 100 km Distance
- Medical Assistance (Under certain conditions)
- Depending on the Customs Duty Code, some Capital Goods
Argentinian Goods and Services Exempted from VAT:
The goods and services that are exempted from VAT in Argentina are:
- Natural Water
- Postage Stamps
- Commercial, Defense and Internal Safety Aircrafts
- National Government’s Ships and Boats
- Government or Public Institutions rendered Services
- Public Educational Programs provided School or University Education
- Religious Institutions supplied Cultural Services
- Medical Care
- Transportation Services for the Sick or Injured
- Cinema, theatre, musical shows, sports events’ Tickets
- Motion Pictures’ Production and Distribution
- Local Transportation up to 100km
- International Transportation
- Real Estate Housing Properties’ Rental
- Sample and Parcels Importation that are Exempted from Custom Duties
- Profitable importation that qualifies for Exemption from Customs Duties under Tourists, Scientists, Technicians, Diplomatic Agents’ Special Regimes.
Good and Services are treated as Zero-Rated Transactions. The services that are economically utilized or effectively applied outside the country are also deemed as exports.
Also visit VAT Calculator Ireland.
Q: Does Argentina have VAT?
Yes, VAT is charged on goods and services in Argentina at a Standard Rate of 21%. However, the rate differs according to the type of goods or services provided.
Q: Do Tourists pay VAT in Argentina?
International Visitors have to deal with the 21% VAT charged on accommodation in Argentina. However, VAT on hotel stays and other accommodations will automatically be refunded. The International Visitor pays with a foreign credit card or through bank transfer from a foreign bank.
Q: What is AFIP in Argentina?
AFIP stands for Administración Federal de Ingresos Públicos. It is a revenue service that administers taxation in Argentina.
Q: What is the income tax rate in Argentina?
Argentina has a 35% Personal Income Tax Rate.
Q: Does Argentina Tax Worldwide Income?
Argentinians are taxable on worldwide income. However, for taxes paid on foreign sources’ income, they may obtain a foreign tax credit. The non-resident and foreign beneficiaries only pay taxes for their Argentina source income.