Argentina VAT (IVA) System - Complete Guide for Businesses

Argentina VAT (IVA) System

Argentina’s Value Added Tax is officially called Impuesto al Valor Agregado (IVA). This consumption-based tax is applied at each stage of the production and distribution chain. Administered by the Federal Administration of Public Revenue (AFIP), VAT is one of the country's most important sources of revenue.

📊 Argentina VAT (IVA) Rates

As of 2025, Argentina’s VAT system includes the following rates:

🔹 Standard Rate: 21%

Applies to most goods and services such as clothing, electronics, fuel, household products, and more.

🔸 Reduced Rate: 10.5%

Applies to essential items such as bread, meat, medical services, public transportation, and certain agricultural products.

🔺 Increased Rate: 27%

Applies to specific services such as telecommunications, water, gas, and electricity when provided to commercial users.

⭕ Zero Rate: 0%

Applies to exports and some specific operations like newsprint or international transport.

🏢 VAT Registration in Argentina

📍 Mandatory Registration:

Businesses in Argentina must register for VAT if they engage in taxable activities on a regular basis. There’s no fixed threshold registration is mandatory based on the nature of the business.

🌍 Foreign Entities:

Non-resident businesses must appoint a local tax representative and register for VAT if they operate or supply taxable goods/services in Argentina.

🔗 AFIP Online Services:

Registration is completed through AFIP’s online portal using a CUIT number (tax ID) and digital tax code (Clave Fiscal).

🔢 Argentina VAT Number Format

The VAT number is part of Argentina's tax identification system: CUIT (Clave Única de Identificación Tributaria).

Format: XX-XXXXXXXX-X

Example: 20-12345678-3

🧾 Invoicing Requirements

Argentine businesses must issue invoices according to strict AFIP electronic invoicing regulations. Key invoice details include:

• Invoice Type (A, B, C – based on buyer category)
• CUIT numbers of buyer and seller
• Invoice number and date
• Description of goods/services
• Net amount, VAT rate, VAT amount
• Total amount (with VAT)
• Currency (usually ARS – Argentine Peso)

Invoices are issued through certified billing software or AFIP’s online system.

🧮 VAT Calculation Example

• Net Price: ARS 50,000
• VAT @ 21% = ARS 10,500

Total = ARS 60,500

📅 Filing VAT Returns

• Frequency: Monthly
• Deadline: Generally by the 20th of the following month
• Platform: Filed via AFIP’s portal using digital tax credentials

⚠️ Penalties apply for late filing, underreporting, or errors.

🌐 VAT on Imports and Exports

📥 Imports:

Imports into Argentina are subject to VAT at the point of entry. Importers pay VAT along with customs duties and can later reclaim it as input tax.

📤 Exports:

Exported goods and services are zero-rated. Exporters can claim VAT credits/refunds on related expenses, provided proper documentation is submitted.

🌎 Cross-Border Digital Services

Foreign digital service providers (like streaming platforms, SaaS providers, etc.) must charge and remit 21% VAT if the service is used in Argentina.

Examples: Netflix, Amazon Prime, Spotify, etc.

VAT is often withheld by credit card companies or banks and remitted to AFIP on behalf of the provider.

🚫 VAT Exemptions in Argentina

Some goods and services are exempt from VAT:

• Health and education services
• Financial and banking services
• Books and newspapers
• Real estate transfers
• Insurance policies
• Public transport (within city limits)

Note: Exempt entities cannot claim input VAT credits.

💸 VAT Refunds

• Local businesses can carry forward excess VAT credits to offset future VAT liabilities.
• Foreign businesses cannot generally claim VAT refunds directly, except through reimbursement mechanisms for certain expenses (e.g., tourism, trade shows) if Argentina has a bilateral agreement.

✅ VAT Compliance Tips

• 📌 Register promptly and keep CUIT and Clave Fiscal secure
• 📃 Issue correct e-invoices based on buyer type (A, B, C)
• 🧾 Keep digital records of invoices and returns for at least 10 years
• 🗓 File returns monthly, by the 20th
• 🔄 Use certified billing software or AFIP’s tools for e-invoicing
• 📥 Reclaim VAT on imports with proper documentation
• 🚫 Never mix exempt and taxable supplies without proper tracking

Argentina’s VAT system (IVA) is comprehensive and applies to a wide range of domestic and international transactions. Understanding the correct rates, registration process, invoicing requirements, and compliance obligations is essential for businesses operating in or with Argentina.

👉 Use our Argentina VAT Calculator 🇦🇷 at GSTCal.org for instant and accurate tax calculations.