On December 11th, 2018, the General Resolution (AFIP) No. 4356 (hereinafter, the “Resolution”) was published in the National Official Gazette. This Resolution establishes the mechanism for the payment of the value added tax (hereinafter, “VAT”) by the substitute taxpayer of foreign beneficiaries that perform activities taxed in Argentina under the terms of Section 1, subsection b), Section 4, subsection h) and Section 4.1 of the VAT law.
The Resolution establishes that the individuals and companies resident in Argentina that pay for said services as well as the representatives or intermediaries of said foreign beneficiaries that perform them on their behalf are considered substitute taxpayers.
The tax will have to be settled and paid within 10 business days after the execution of the taxable event.
Argentine residents that are final consumers or are registered under the Simplified Regime for Small Taxpayers shall not be considered substitute taxpayers. The Resolution also establishes the procedure applicable for the tax withholding by financial entities that intervene in payments performed by exempt taxpayers and the National, Provincial, municipal governments, or the Government of the City of Buenos Aires, its autarchic and decentralized entities.
Those taxpayers registered in the VAT before the tax authorities will be able to consider said tax as a fiscal credit in the fiscal period in which it was paid. They will be able to offset the tax with fiscal debit in the following periods, pursuant to Section 24 of the VAT Law.
The procedure indicated above will be enforceable as from January 28th, 2019. The tax accrued due to the tax events as from September 12th, 2018 up to January 28th, 2019, will have to be paid by the substitute taxpayer until February 15th, 2019.
For further information, do not hesitate to contact Ariadna Artopoulos, Lucía de Zavalia o Francisco Altamirano.
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