How Electronic Invoicing Works in Argentina

These fees contribute to the funding of essential municipal services such as lighting, garbage collection, and maintenance of public spaces. Throughout this guide, we will discuss tax incentives, recent tax reforms, and international taxation in Argentina. We will also shed light on the social security taxes imposed on employers and employees, ensuring a comprehensive understanding of the Argentina tax system as a whole.

Employers in Argentina have the responsibility to contribute to the social security system on behalf of their employees. These contributions are calculated based on the employees’ total monthly compensation. It is important for employers to accurately determine and fulfill their obligations to avoid any penalties or legal issues. The fees charged by municipalities are determined at the local level and vary based on factors such as property value, location, and construction details.

VAT on Digital Services in Argentina

Each municipality sets its own fixed rates for these fees, which are then applied to residential, commercial, and industrial properties within their jurisdiction. Excise taxes are levied on specific products in Argentina, such as tobacco, alcohol, and gasoline. These taxes are designed to discourage the consumption of certain goods and contribute to public health and environmental goals.

Provincial Taxes in Argentina

ARCA has announced a Consumer Tax Transparency Regime, requiring large companies to itemize VAT and other indirect taxes on invoices starting January 1, 2025. This initiative aims to provide consumers with a clear breakdown of tax components in their purchases, enhancing transparency and informed decision-making. Provincial and municipal authorities are encouraged to adopt similar measures for local taxes.

Reporting and invoices as proof of perception

As such, the business owners must first apply for this regime, and obtain authorization from the tax authorities in Argentina. Once accepted, the tax authorities can assign an Electronic Authorization Code or CAE which must be incorporated in any electronic invoice issued. All financial transactions of the companies must be registered, according to the laws of Argentina. This includes the VAT, an important tax imposed on most consumer goods and services. Therefore, any fiscal receipt or bill must also contain details about the imposed VAT.

Agreements on Avoidance of Double Taxation

The collection regime will only apply when each transaction amount exceeds ARS 3000. Taxpayers who issue invoices concerning these provisions must ensure compliance with the document data requirements, used as evidence of the collection for the final VAT calculation. The goal of these taxes is to regulate and control foreign trade, while also generating revenue for the government. They are typically levied as a percentage of the value of the imported or exported goods. The tax reform in Argentina includes measures such as digitalization of tax procedures, introduction of online tax filing systems, and strengthening of tax audit capabilities. These reforms aim to reduce tax evasion, increase tax revenues, and improve the overall effectiveness of the tax system.

Voluntary Registration

Furthermore, taxable persons will not depend on the authorization of the recipient anymore. The use of paper invoices will be limited to exception cases authorized by the relevant Member State. This information will feed into the risk analysis systems of the Member States to help them counter the VAT fraud linked with the intra-Community trade, in particular Missing Trader Intra-Community fraud. The collection regime will be applicable for taxable events perfected as of 1 April 2023. As a result, sellers of food and other products for human consumption, beverages, personal hygiene and cleaning items will charge the buyer an additional 3% or 1.5% as appropriate on the sale price according to the applicable fee.

Does this measure include provincial and municipal taxes?

These incentives not only provide financial relief but also contribute to the development of strategic industries and the overall progress of the country. In this guide, we will delve into various aspects of the Argentina tax system, including federal, provincial, and municipal taxes. We will explore the different taxes imposed by the Federal Administration of Public Revenue (AFIP), such as income tax and value-added tax (VAT). Furthermore, we will examine the tax systems imposed by each province, including taxes on gross income, real estate, and business turnover.

Argentina unifies its Embassy in Uruguay and Permanent Representation to…

In preparation for the new rules, businesses will have to make significant changes to their systems and processes, and in order to be ready to implement these in a timely manner, it is important to consider and prepare for these on time. The taxpayers must report such transactions up to the due date for filing the Income Tax return for the fiscal year to which they correspond. There will be no possibility to continue issuing summary invoices for a calendar month as it goes against the aim of the almost real-time reporting system. Understanding the municipal fees in Argentina is crucial for property owners and residents to effectively manage their finances and contribute to the sustainable development of their local communities. There is no restriction regarding the employment of foreigners, provided they hold working visas. Invoices and receipts must include a section detailing the amount corresponding to VAT and other indirect national taxes.

VAT in Argentina

It ensures the well-being of workers and helps fund various social programs and benefits. In addition to tax incentives, Argentina has also undergone tax reform in recent years to simplify the tax system and improve tax administration. The goal of these reforms is to make the tax system more efficient, transparent, and user-friendly for taxpayers.

Digital Reporting Requirement on cross-border B2B transactions

In addition to tax treaties, Argentina also has a robust system of foreign trade taxes.
Trent is a Senior Tax Technology expert at Fonoa with over 8 years of experience in providing e-invoicing compliance and global digital reporting advisory.
By charging fees for services like lighting and garbage collection, municipalities are able to allocate resources more effectively and provide residents with essential services that contribute to their quality of life.
The resolution also establishes that the only valid document to prove the payment of the perceptions will be the invoice or equivalent document (issued under the current invoicing regulations).
Companies may request refunds of overpaid VAT (VAT credits) or carry it forward to future return periods.
The 10.5% VAT rate also applies to the supply of advertising and publicity in some situations, medical assistance, housing construction, and sales and imports of bovine animals.
The government has introduced measures to streamline tax processes, enhance taxpayer compliance, and reduce the administrative burden.

Exporters must file an export return with the tax authorities, reporting the VAT receivables related to their exports to be reimbursed on VAT paid in relation to the export operations. A report certified by a public accountant with respect to the value, registrations, and other characteristics related to the refund must be attached to the export return. Such purchases are considered as inventory and cannot be calculated by the buyer as a VAT credit.

Doing Business in Argentina

Regarding digital products for sale in Argentina, VAT is imposed depending on the number of sales registered in the country and the type of business, whether B2B or B2C. Thus, there is no threshold for VAT registration in Argentina if you sell such products. The standard VAT rate in Argentina is 21%, but there is also a higher rate of this tax, of 27%, which applies to the services offered by the suppliers of gas, energy, water, and mobile telephony. Discover in this article how the registration of VAT in Argentina in 2025 of local and international companies is done. Legal support and advice in this direction can be provided by our lawyers in Argentina.

An annual wealth tax is levied on the shares or holding in the capital of local companies owned by individuals or undivided estates domiciled in Argentina or abroad, and/or companies and/or any other type of legal person domiciled abroad.
Their validity depends on approval by the Argentine Customs and Revenue Control Agency (ARCA).
This helps to ensure that taxpayers are not subject to excessive taxation and promotes a fair and efficient international tax system.
The system aligns with global standards but includes specific requirements unique to the country.
In addition to federal and provincial taxes, municipalities in Argentina impose fees for various services provided to residents.
Therefore, any fiscal receipt or bill must also contain details about the imposed VAT.
You must register if you habitually or incidentally sell movable property, provide services, or import goods.
These provinces levy various taxes on income, property, and business turnover, contributing to the overall tax structure of the country.

This shift weakens U.S. dominance in the region while allowing China to strengthen its influence in Latin America’s digital services sector. When it comes to international taxation, Argentina has taken steps to ensure fair treatment of international transactions while avoiding double taxation. The country has established tax treaties with various nations, facilitating the smooth flow of trade and investment.

ARCA’s Consumer Tax Transparency Regime: What Large Companies Need to Know

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

Argentina incorporates various MERCOSUR phytosanitary regulations

If a taxpayer is not domiciled or incorporated in Argentina, they should register as long as they have a physical presence (i.e., permanent establishment) in the country.
The fees charged by municipalities are determined at the local level and vary based on factors such as property value, location, and construction details.
It is important to note that the simplified tax system is primarily designed to benefit small businesses and individuals with lower revenues or limited operations.
This change allows consumers to see the tax impact of each purchase, promoting transparency.
Each province has the autonomy to establish its own tax rates, exemptions, and incentives, taking into account the specific economic and social context of the region.
If the payment is made by credit card or financial institution, they should act as withholding agents and remit the VAT amount to the tax authority.
An expedient VAT recovery mechanism for VAT credit balances on certain infrastructure and investments in capital goods is available, to the extent that companies have not been able to recover the VAT within six months.
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.

Our law firm is specialized in various legal areas, from commercial law to tax law.

Experience the VAT IT

An annual wealth tax is levied on the shares or holding in the capital of local companies owned by individuals or undivided estates domiciled in Argentina or abroad, and/or companies and/or any other type of legal person domiciled abroad. It shall be assessed and paid directly by the local company as a full and final payment on behalf of the shareholders (the issuing company has the right to recover from the shareholder the tax paid). Trent is a Senior Tax Technology expert at Fonoa with over 8 years of experience in providing e-invoicing compliance and global digital reporting advisory. Specializing in delivering tailored e-invoicing solutions, Trent helps businesses streamline operations and meet regulatory requirements efficiently.

Note that a Supreme Court decision has ruled on the non-applicability of this tax to Argentine branches of foreign companies. The levels of import duty currently range between 0% and 35%, except in cases where a specific minimum duty is applied or that involve merchandise with a specific treatment. These percentages were established considering the individual competitive conditions prevailing in different production sectors and the relative advantages of contributing to the introduction of equipment and technology for local industry. In general, merchandise originating from Latin America Integration Association (LAIA) countries is entitled to preferential duty.

VAT registration is voluntary for foreign businesses established in Argentina and offering digital products and services. One of our Argentinian lawyers can tell you more about the VAT in Argentina and the rates https://www.vatupdate.com/2019/10/09/argentina-implements-digital-vat-book/ imposed in 2025 for varied goods and services available for sale purposes. We have experts who can provide essential legal advice for international entrepreneurs who want to start a business in Argentina.

Income tax in Argentina is progressive for individuals, meaning the tax rate increases as income levels rise. This system ensures that higher-income individuals contribute a larger proportion of their earnings in taxes. There is no specific method stated in the legislation for allocating the tax credit related to exports, but taxpayers are able to use any methods of calculation that would be suitable to their business model. VAT paid on purchases, final imports, and rental of automobiles not considered as inventory cannot be computed by the purchaser as a VAT credit.

The implementation of these changes will have an impact on all taxpayers doing business in the EU irrespectively of size and industry. Stay up to date with the latest tax and compliance updates that may impact your business. Those taxable persons using “Fiscal Controllers” documents of “New Technology” to comply with the provisions of the preceding paragraph must use the section “Other Taxes” on the document. Employee contributions are also an integral part of the social security system in Argentina. These contributions are deducted from the employees’ monthly salary, subject to a certain cap. By contributing to the system, employees gain access to benefits such as healthcare coverage, retirement pensions, disability benefits, and more.

Taxpayers using ARCA-approved electronic invoicing systems will see VAT discrimination reflected automatically in the XML file. This requirement should not apply to those registered for the simplified scheme (”Monotributo”). For periods up to June 2020 inclusive, electronic registration will continue as provided in Title II of General Resolution No. 3,685 and its amendments. Be the first to know about top business trends that can drive success for your company.

Import duties and export taxes can vary based on factors such as the type of goods, their origin or destination, and any applicable trade agreements. The tax incentives in Argentina are designed to encourage various activities, such as research and development, renewable energy projects, film production, and export-oriented businesses. Eligible taxpayers can benefit from reduced tax rates or even complete exemptions for a certain period of time.

Our lawyers in Argentina can help you with all the formalities before starting business activities in this country. If a taxpayer is not domiciled or incorporated in Argentina, they should register as long as they have a physical presence (i.e., permanent establishment) in the country. You must register if you habitually or incidentally sell movable property, provide services, or import goods. Now that the content of ViDA package is politically agreed and formal adoption is likely to follow, we recommend that you begin assessing the impact for your organization.

From April 1, 2019, all taxpayers registered for VAT, the simplified regime and exempt entities should issue an e-invoice for any type of transaction and request the authorization code detailed below. RG 4597 AFIP establishes a system for electronic registration of sales, purchase, assignments, exports and definitive imports of goods and services, locations and benefits, called “Digital VAT Book”. Tax payers are obliged to electronically register their operations through this regime. The proposal changes the current situation, providing that electronic invoicing (without a clearing system and only structured electronic files) will be the default system for the issuance of invoices. Taxable persons will always be allowed to issue electronic invoices according to the European standard.

VAT is applied on the sale of goods and services within Argentina, as well as on imports. The system aligns with global standards but includes specific requirements unique to the country. The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

Invoices will now detail VAT and “Other Indirect National Taxes.” Existing electronic systems will reflect these changes in XML automatically, with updates required in PDFs. This transparency benefits consumers by clarifying the impact of taxes on their transactions. The VAT threshold in Argentina is set at ARS 300,000 for goods available for sale purposes, and ARS 200,000 for a wide range of services. You can discuss more on this topic with our Argentinian attorneys with experience in tax compliance. Also, those interested in opening a company in Argentina can ask for a free case evaluation and enjoy personalized offers tailored to their business needs. Argentina’s VAT system is governed by the National Tax Code and other VAT-specific laws.