VAT is known in Argentina as impuesto al valor agregado (IVA). The standard rate in Argentina is 21%. There’s 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, and books, newspapers, and periodicals.  
 

The following are exempt from VAT in certain circumstances: residential housing/farm leasing, passenger transport, medical services, education, public entity services and water, and bread and milk.
 

There’s also a gross income tax in Argentina — impuesto sobre los ingresos brutos (IIBB). Its rates vary, but the averages are:

• Commercial services: up to 4.5%

• Industry and goods: up to 3%

• Others: up to 6%
   

VAT/IVA is administered by the Federal Administration for Public Revenues, while IIBB is administered by the revenue service of each province — Dirección General de Rentas. 

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

• 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.

The business or individual taxpayer — or a representative — must register for VAT in Argentina via the Administración Federal de Ingresos Públicos (AFIP) website. 

Non-established businesses — those with no fixed establishment in Argentina — must register as a taxpayer for VAT if they supply goods or services in Argentina. 

There are penalties for late registration, which include being unable to operate any kind of commercial activity in the country. Financial penalties may also apply. 

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.

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.

A taxable person that has paid too much VAT in a period in error may request a refund of the overpaid amount. Interest is paid by the VAT authorities on overpaid tax at the rate of 0.5% per month.