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Argentina: VAT rate increase for certain imports; increased import fee

Argentina: VAT rate increase for certain imports

General Resolution no. 4461/2019, published in the official gazette on 17 April 2019, provides that the rate of value added tax (VAT) imposed on the importation of certain goods increases to 20% (from 10%).

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Whether the increased VAT rate will apply for any specific product depends on the tariff classification of the imported goods.

The general resolution clarifies that the increased rate of VAT applies for taxpayers that do not demonstrate that they are exempt from VAT or are not subject to VAT, or in situations when the imported goods are regarded by the importer as fixed assets for accounting purposes.

Read Resolución General 4461/2019 (Spanish) issued by the tax authority (Administración Federal De Ingresos Públicos (AFIP)) 

KPMG observation

In October 2018, General Resolution no. 4419/2018 included provisions that reduced the VAT rate, and in some instances, effectively provided for zero VAT liability. That guidance has been replaced by General Resolution no. 4461/2019 that re-establishes the previous VAT rates. With this change, some importers may experience a substantial increase of VAT credit balances—and these may be difficult to offset against output VAT.

Increased fee for imports of goods

Decreto no. 332/2019 (Spanish) was published in the official gazette on 6 May 2019, and reflects that the “statistics fee” (the fee that applies with respect to definite and temporary importation of goods) has increased to 2.5% (up from 0.5%) through 31 December 2019.


The increased fee is subject to the following limits:

Taxable base (in U.S. dollars)

Statistics fee, maximum amount (in U.S. dollars)

Less than $10,000

$150

Between $10,000 and $100,000

$2,500

Between $100,000 and $1,000,000

$25,000

Between $1,000,000 and $5,000,000

$125,000

More than $5,000,000

$125,000


The decree also suspends, until 31 December 2019, certain exceptions—for example, exceptions that have been available with respect to temporary imports of capital goods or goods originating from the Mercosur countries (the South American trading group). Thus, imports of capital goods or goods from Mercosur are subject to the fee.

 

For more information, contact a professional with the KPMG member firm in Argentina:

Juan Martín Jovanovich | (+54 11) 4316 5834 | mjovanovich@kpmg.com.ar

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