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Everything You need to know about Digital Services VAT in Argentina

With Argentina’s recent update of non-resident companies that should be subject to VAT on their provided digital services, it’s important to note the ins and outs of digital services VAT in Argentina. 

Recent developments around Digital Services VAT in Argentina

This week, Argentina’s VAT authority (AFIP) published its updated list of non-resident digital service providers that are subject to VAT on the supplies they make to Argentinian consumers. This updated list is effective from September 2020 and includes over 400 entities many fo which belong to the same groups. 

Delay in Roll Out of Mandated Reporting on Digital services withholding VAT

This week, AFIP also announced that they will postpone the mandated live reporting of withholding VAT by three months (now 1 December 2020 instead of 1 September 2020). This delay includes the issuing of certified certificates through the government’s SIRE system. 

The new timetable for uploading your digital books is as follows: 

  • Jan 2021 – VAT exempt businesses
  • Nov 2020 – turnover above ARS 10m
  • Oct 2020 – turnover between ARS 5m and ARS 10m
  • Sep 2020 – turnover between ARS 2m and ARS 5m
  • Jul 2020 – turnover ARS 0.5m and ARS 2m
  • June 2020 – turnover below ARS 0.5

Who needs to understand Digital Services VAT Withholding in Argentina?

Any non-resident who provides local Argentinians with services over the internet or acts as intermediaries for those transactions will need to understand VAT responsibilities. Argentina’s VAT authority has also released a list of those companies who need to account for VAT withholding.  

What is a digital service in Argentina? 

According to AFIP, services that are vatable are those which “are carried out through the internet or any adaptation or application of the protocols, platforms or technology used by the internet or other network through which equivalent services are provided which by their nature are basically automated and require minimal human intervention, wahtever the device used for downloading, viewing or use.” (source)

Digital services in Argentina: 

  • The supply and hosting of computer sites and web pages, as well as any other service consisting of offering or facilitating the presence of companies or individuals on an electronic network.
  • The supply of digitized products in general, including, among others, computer programs, their modifications and their updates, as well as the access and / or download of digital books, designs, components, patterns and the like, reports, financial analysis or data and market guides.
  • Remote maintenance, in an automated way, of programs and equipment.
  • Remote systems administration and online technical support.
  • Web services, including, among others, the storage of data with remote or online access, memory services and online advertising.
  • Software services, including but not limited to software services provided over the Internet (“software as a service” or “SaaS”) via cloud-based downloads.
  • Access and / or downloading of images, text, information, video, music, games, including games of chance. 
  • The provision of databases and any service automatically generated from a computer, through the Internet or an electronic network, in response to a specific data entry made by the client.
  • Online club services or dating websites.
  • The service provided by online blogs, magazines or newspapers.
  • The provision of Internet services.
  • Distance learning or tests or exercises carried out or corrected in an automated way.
  • The granting, for consideration, of the right to market a good or service on an Internet site that functions as an online market, including online auction services.
  • The manipulation and calculation of data through the Internet or other electronic networks.

Assistance with Digital Services VAT compliance in Argentina 

Vatglobal offers assistance with registration and filing in over 100 different countries. We have been following the developments in Argentina closely. Therefore, we can help your business if you require administration assistance with your VAT withholding. Get in touch with us by emailing info@vatglobal.com

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