Indirect tax ebook - Argentina

Reporting & Filing 

Resident companies

General
VAT returns are filed monthly.

The VAT return has to be submitted the 18th working day of the month following the reporting period. The payment must be received by the VAT authorities on the same day. If no payment has been received on time, interest must be calculated (monthly rate of 2%).

Late filing of VAT returns may result in additional assessments and penalties. If entrepreneurs/taxable persons take the initiative to revise prior VAT returns because they did not report and pay the full VAT amount, penalties will be imposed, but they are limited to 50%.

Importers
VAT is levied on importation of goods into the territory of Argentina. Every person importing goods will be responsible to pay VAT to the authorities, in principle, when filing the import declaration. Subsequently, when filing a periodic VAT return, entrepreneurs importing goods into Argentina in the course of their business may, as a general rule, recover the VAT paid upon importation as input VAT.

Foreign taxable persons
Services provided overseas but utilized in Argentina are deemed to be considered as “imported services” and levied with VAT.
Persons using or exploiting in Argentina services rendered abroad by non-residents and so long as they are taxpayers for other taxable events, are responsible for paying the VAT.

Recovery of VAT/negative VAT return

Excess credits at the end of the month are carried forward to later months showing a debit balance.

However, if the excess credits originate from direct payments by the taxpayer, they may also be used to pay other taxes, be transferred to other taxpayers or refunded.

Penalties

When the obligation exists to submit sworn returns, omitting to do so within the general periods which the fiscal authority (AFIP) establishes, shall be punished, without the need for prior requirement with a fine of $400 (argentine pesos four hundred).

Also interest must be paid at a rate of 3% monthly

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