Argentina - Taxes & Laws

[Mariano Pulgar]

Hi!

I am from Argentina and I would like to share information about taxes and laws.

e-Commerce Laws

Here are no regulations about e-commerce in the present. The e-Commerce chamber is working on an "e-Commerce Law" but I don't know the status of that work. Besides, the release of new laws in our country is too slow and complicated so I do not expect too much about that law in the short term.

Commercial Laws

In Argentina, companies and/or individuals can do commercial transactions. The regulations are different for both.

Taxes

We have 3 main taxes in Argentina, as follows:

1. IVA (VAT = Value Added Tax):

It's 21% for almost all the products.
In some specific articles, it could be 10,5% (Some electronic products).
In some services like cell phone communications could be 27% for companies and 21% for individuals

The way of calculating the tax you will pay is done thru the rest between IVA Sales versus IVA Purchases.

Example:

You have sold an article in USD 100
You have purchase the article for USD 50

You shoud pay the IVA over the difference so
USD 100 x 21% = USD 21
USD 50 x 21% = USD 10,5

Payable IVA: USD 10,50

2. Gross Income Tax:

It's variable and could go from 3% to 3,5% depending on the customer's location. It's a direct tax. For example: Over an invoice of USD 100, you have to pay USD 3 of Gross Income Tax.

3. Net Income Tax:

It's calculated by the end of each fiscal period. Commonly a year. After paying the IVA and the Gross Income Tax. If you won for example USD 100 you will have to pay a percentage of that net income.

For Companies it's 35% direct so considering the example, it would be USD 35.

For Individuals (doing business) there is an scale and the percentage is variable.

I expect that the provided information be usefull for the comunity.

Best Regards to all!

Mariano Pulgar

[Matthieu Biart]

Hi Mariano!

Thank you for this well explained report.

There is just few information missing:
* voucher tax application
* shipping tax application

Moreover we'd like to know if our current order process need any specific modification to suit local legislations.
Same thing about the current invoice.

[Mariano Pulgar]

Hello,

My answers below your questions/comments in capitals:

There is just few information missing:

* voucher tax application

NO SPECIFIC TAXES APPLIES ON VOUCHERS. IF A VOUCHER IMPLIES A DISCOUNT, THE TAX WILL APPY TO THE TOTAL AMOUNT LESS THE VOUCHER DISCOUNT.

* shipping tax application

NO SPECIFIC TAXES APPLIES ON SHIPPING COSTS. IF A SHIPPING COST IMPLIES AN AMOUNT INCREASE, THE TAX WILL APPY TO THE TOTAL AMOUNT PLUS THE SHIPPING COST.

Moreover we’d like to know if our current order process need any specific modification to suit local legislations.
Same thing about the current invoice.

* CURRENT ORDER PROCESS SUITS TO ARGENTINEAN LEGISLATIONS.

* CURRENT INVOICE FORMAT SUITS LOCAL REGISTRATIONS BUT ELECTRONIC INVOICE IN ARGENTINA REQUIRES ADDITIONAL PROCESS. I WILL FIND OUT MORE ABOUT THIS ISSUE AND I WILL MAKE A NEW POST WITH MY INVESTIGATION.

Regards to all.

Mariano

[Matthieu Biart]

Hi Mariano!

Thank you for those important extra detail.

[Robert W]

Hello Mariano,
I had a quick question regarding invoicing in Argentina. What are the rules regarding 2 or more digits on an invoice for a price. We are being told it is the law in Argentia that companies must use only 2 digit prices, when in in fact, past invoices used to have 3 and 4 digit prices because of the quantities and sizes of the product purchased. Is there anything that states this?

We buy very small parts and prices used to be as an example, $.061. To buy 100,000 pieces at the required $.07 increases our cost by 14.7%. What could be done to eliminate this type of pricing structure or to overcover the increase in costs?

Thanks for your previous postings. They are most helpful.