Argentina’s New VAT Rules & Invoice Transparency for Large Companies | Key Tax Updates

January 13, 2025

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In the past year, Argentina has undergone various changes in its fiscal policies, budget, and tax regime, including VAT. As the president, Javier Milei, continued his aggressive reform to recover Argentina's financial situation, several resolutions were adopted and published in the Official Gazette.

Effect of Adopted Resolutions

The Customs Control and Collection Agency, also known as ARCA, regulated the fiscal transparency regime through Resolution 5614/2024. The Resolution, which requires large companies to itemize VAT and other national indirect taxes, will be implemented gradually, eventually including both medium and small businesses.

The Resolution went into effect on January 1, 2025. While large companies must include a line on their invoices specifying the VAT amount and detailing internal taxes influencing the final consumer price, other businesses may voluntarily opt into the so-called transparency regime until March 31, 2025, after which participation becomes mandatory on April 1.

Resolution 5623/2025 prolonged the income and VAT exemptions for specific imports, including essential goods and inputs for micro, small, and medium businesses. The measure, which initially lasted until December 31, 2024, is extended until December 31, 2025.

Under Resolution 5624/2024, exclusion certificates for income and VAT advance payments of certain imported goods have been temporarily suspended until June 30, 2025. While this measure is in place, income tax advance payments will not be deductible, while VAT advance payments can be fully credited without restrictions.

Conclusion

Argentina's recent tax and fiscal adjustments, including measures defined in Resolutions 5614/2024, 5623/2025, and 5624/2024, demonstrate a shift toward greater transparency and support for businesses. This is part of a broader plan to tackle ongoing economic challenges and ensure financial stabilization for the public and private sectors.

The long-term effects of fiscal policies and tax reform under President Milei's administration are yet to be seen. Nevertheless, further amendments and changes to the tax regime, including VAT, should be expected in the following months.

Source: ARCA - Fiscal transparency, Bloomberg, Baker McKenzie

What are Argentina’s new VAT rules for large companies under Resolution 5614/2024?

Large companies must itemize VAT and internal taxes on invoices, enhancing fiscal transparency. This rule is mandatory from January 1, 2025.

Who is affected by Argentina’s fiscal transparency regime?

Initially, only large companies must comply, but medium and small businesses must follow suit starting April 1, 2025. Voluntary compliance is allowed until March 31, 2025.

What VAT exemptions apply under Argentina’s Resolution 5623/2025?

Specific imports, including essential goods and inputs for small and medium businesses, are exempt from VAT until December 31, 2025.

What are the changes to VAT advance payments under Resolution 5624/2024?

Income tax advance payments on certain imported goods are temporarily suspended until June 30, 2025. VAT advance payments, however, remain fully creditable.

What is the goal of Argentina’s fiscal transparency regime?

The regime aims to improve tax compliance and transparency, providing clearer pricing information for consumers and supporting Argentina’s economic recovery.

How will Argentina’s VAT changes impact businesses?

Large companies must adjust their invoicing systems, while importers benefit from extended VAT exemptions. All businesses should prepare for stricter compliance requirements.

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