Tax Law: Decree N°813/2018 – Value Added Tax.
CIRCULAR
Tax Department Report
Value Added Tax (“VAT”): “Regulation of payment procedure applicable on services rendered by foreigners, including digital services, as well as recovery of technical balances in favor arising from fixed assets and public services”
Dear Sir or Madam:
Through Decree No. 813/2018 (“Decree”), the Executive Branch amended the VAT Regulatory Decree to adapt it to the last amendments introduced into the VAT Law by Law No. 27,346 and Law No. 27,430. Below you will find a summary of the Decree’s main aspects:
(1) Services rendered in Argentina by foreigners: the suppliers, recipients and intermediaries will be considered Argentine residents if residence conditions set forth in income tax law are met or if they have a fixed place in Argentina.
(2) Digital services rendered by foreigners which are exploited or used in Argentina: the suppliers and intermediaries will be considered Argentine residents if residence conditions set forth in income tax law are met or if they have a fixed place in Argentina.
(3) It regulates the operative aspects to pay VAT in cases (1) and (2).
(4) It regulates the recovery of VAT technical balances in favor arising from the purchase, construction, manufacturing, production or final import of fixed assets.
(5) It regulates the recovery of VAT technical balances in favor for taxpayers rendering public services.
(6) It abolishes Decree No. 354/2018, related to digital services pointed out in (2).
The Decree entered into force on September 12th, 2018, with some special rules regarding its application over points (1) and (2).
Link to Decree No. 813/2018:
Should you require any further information on this matter, please do not hesitate to contact us.
Sincerely,
Fernando Botello
Enrique López Rivarola