VAT Number Format In Argentina

Argentinian VAT number contains 11 digits (e.g., 01-23456789-0).

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VAT Rates In Argentina

The standard VAT rate in Argentina is 21%, with reduced rates of 10.5%, 2.5% on certain goods and services, and a higher rate of 27% on some supplies. There is also one exception on exportations when 0% of VAT is calculating.

• 27% (Higher) – telecommunications and energy (water, gas, electricity)
• 21% (Standard) – applies to all taxable supplies, with certain exceptions
• 10.5% (Reduced) – some existential foodstuffs such as milk, bread, fruits, vegetables, and meat.
• 0% (Zero) – applicable only for exportations

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VAT Payments And Returns In Argentina

All businesses with Argentinian VAT number must submit periodic VAT reports and payments.

VAT Returns Frequency In Argentina

For all companies that operate in Argentina, VAT returns must be submitted monthly, between the 12th and 22nd of the month following the period end.

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Penalties in case of late filings or misdeclarations

In the case of the late filing of VAT returns and payments, the Argentinian government prescribed the penalties as follows:

• the penalty for failing to pay VAT varies between 50% and 100% of the VAT due
• In the case of fraudulent practices, there are fines from 2 to 10 times the unpaid taxes, but in some cases, imprisonments as well.

Due to the electronic invoicing system, all electronic invoices must contain at least the following:

• supplier/issuer data (name, address, tax number CUIT, income registration tax number)
• customer data (name, address, tax number CUIT, income registration tax number)
• unique, sequential invoice number (12 digits)
• start date of activities
• CESP Number – Public Services Electronic Code
• The expiration date of the CESP, preceded by the legend “Date of Vto.”
• date of issuance
• location of issuance (city name)
• The serial number of the digital certificate
• authorization number (the one provided by the Local Tax Authorities)
• the authorization year
• full description of goods and services supplied – quantity, the price per unit
• the net, the taxable value of the invoice
• rate and amount of VAT applicable for the category of goods and services provided
• the invoice total, the gross value of the invoice

The mandatory e-invoicing in Argentina went through several waves of adoption, but as of 2019, it is mandatory for all entities in Argentina.

Governmental body responsible for e-invoicing in Argentina:

• ‍Administración Federal de Ingresos Públicos

Generally, invoices in Argentina, also known as eFactura, can be issued in two ways:

1. Through the AFIP portal for manual issuance of invoices
2. Using invoicing software for both manual and automated issuance of invoices
   

In both scenarios, entities must apply for the Electronic Authorization Code (Código de Autorización Electrónico - CAE) to be able to report invoices to AFIP.

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What does the reporting process in Argentina look like?

1. Through the AFIP portal or using invoicing software, the selling entity sends an XML file with all required information about the transaction to Argentine Tax Authorities (AFIP).
2. AFIP validates the invoice's authenticity, adds Electronic Authorization Code (CAE) and expiration date, and sends it back to the seller.
3. Once AFIP approves the transaction, the selling party is allowed to issue the invoice in electronic or paper form to the buyer.

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Date updated [May 12, 2021]

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