Argentina Federal Administration of Public Revenue AFIP : Value Added Tax VAT

Organization : Federal Administration of Public Revenue
Type of Facility : Value Added Tax VAT
Country: Argentina

Website : http://www.afip.gob.ar/

AFIP Value Added Tax (VAT)

Scope:
The value added tax shall apply on:
** Sales of personal property within the country made by a taxable person
** The independent provision of services within the country

Related : Argentina Federal Administration of Public Revenue Postal & Courier Service System : www.statusin.org/9640.html

** The import of personal property
** The provision of services abroad, when the actual use of the services takes place in Argentina and the user is a registered taxable person

Section 1 – Law 20631 (amended text of the law 1997):
Any transfer made for a valuable consideration between natural or legal persons, estates or entities of any kind which entails the transfer of the ownership of personal property (sale, exchange, payment, allocation due to dissolution of the corporation, social contributions, sales and judicial auctions, or any other act with the same aim, except expropriation), including self produced goods in the case of leasing and provision of services, and the sale of those fixed to the ground at the time of transfer, as long as they are considered inventories.

Section 2 – Law 20631 (amended text of the law 1997)

Taxable Persons:
For the purposes of this section, “taxable person” means any person who:
a) Regularly sells personal property or makes commercial transactions or is an heir or legatee of taxable persons. In this case, they would be taxable persons when they sell goods that would have been taxable while owned by the deceased person
b) Sells or buys in his name but on behalf of others
c) Permanently imports personal property in his own name and behalf or on behalf of others
d) Is a building company that makes works included in Section 3 (b), using any business organization form, including one owner companies. For the purposes of this Subsection, building companies are those which, directly or through third parties, make the works mentioned or totally or partially sale the real property for commercial purposes
e) Provides taxable services
f) Is a lessor, in the case of taxable leases

Section 4 – Law 20631 (amended text of the law 1997)

Taxable Event:
A taxable event is perfected::
a) In the case of sales (including accountable assets) when the goods are delivered, when the invoice is issued or when an equivalent act is performed, whichever happens first In the case of primary products from agriculture and cattle raising; poultry farming; fish farming and beekeeping, including obtaining fresh eggs, natural honey and pure beeswax; forestry and wood extraction; hunting and fishing and activities related to the mineral, raw oil and gas extraction through operations in which the price is fixed after the product is delivered, the tax shall be charged at the time said price is fixed

b) In the case of provision of services or contract of services or work, when the contract or service is terminated or when the total or partial amount corresponding to the price is paid, whichever happens first, with the exceptions set forth by the law

c) In the case of work performed on real property of third parties, once the final completion certificate is accepted, whether partially or totally, or when the total or partial amount corresponding to the price or the amount mentioned in the invoice is paid, whichever happens first

d) In the case of lease agreements of telecommunication services, upon due payment or upon collection thereof, whichever happens first. The same criterion shall be applied to the leases and services included in Section 3, Paragraph 21 (e); said consideration must be calculated according to amounts or sale units, production, exploitation or similar indexes, when the payments are made in installments for the periods in which the total term of use of the personal property is divided

e) In case of work performed directly or through third parties on the real property of a person when the conveyance is based on a valuable consideration. This takes place when the deed of conveyance of title is drawn or when legal possession is acquired, if the latter happens first. In the case of court-ordered sales through public auctions, the conveyance shall be considered as performed when the final court order is issued

f) In case of imports, once the transaction is completed

g) In the case of a hire-purchase agreement, when the good is delivered or when there is an equivalent action, when the lease refers to the cases stated in the law

Notwithstanding the aforementioned subsections, when down payments or advanced payments are made in order to fix the price, the tax shall be chargeable upon payment and on the amount received

Section 5 – Law 20631 (amended text of the law 1997)

Exemptions:
Exemptions within the territory of the country:
Sales (and works which involve the transfer of exempted goods) of the following: of the following goods: Books, fliers and similar printings; water, bread, milk, medicines, postage stamps valid for use in postal services, fiscal stamps and other similar stamps, betting slips, lottery tickets and other forms of duly authorized gambling, aircraft use in commercial activities and defense or inland security, ships or boats acquired by the National Government.

Provision of services such us: services rendered by the Government (National, Provincial or Local) or by public agencies; school or university education provided by private institutions subject to public educational programs; cultural services provided by religious institutions; hospital and medical care and related activities; provision of medical care in the exercise of medical and paramedical profession; transportation services for sick or injured people in vehicles specially designed; tickets for theatre, cinema, musical shows and sport events; production and distribution of motion picture films; local transport of passengers (taxis, buses, etc.) up to 100 km., international transportation; transactions related to deposits and current accounts in bank institutions according to Law 21526, directors’ fees; leasing of real property