VAT and Sales Tax in Argentina

Argentina's indirect-tax system is built on two parallel layers: federal IVA (Impuesto al Valor Agregado) administered by ARCA (Agencia de Recaudacion y Control Aduanero, the authority formerly known as AFIP until October 2024), and provincial Ingresos Brutos (IIBB), a gross-receipts tax levied separately by each of Argentina's 23 provinces plus the City of Buenos Aires. Understanding both is essential for any business or individual earning revenue in the country. For a broader overview of Argentine taxes, see the Argentina country overview.

What are the IVA rates and what do they cover?

Federal IVA operates under Ley 23.349 using a credit-debit mechanism: registered taxpayers offset IVA paid on inputs (fiscal credit) against IVA charged on outputs (fiscal debit), remitting only the net difference to ARCA. Three main rates apply:

The 21% standard rate covers the large majority of goods and services, including professional fees, imports, and most commercial transactions.

The 10.5% reduced rate applies to a defined list: basic foodstuffs such as bread, fresh meat, vegetables, and fruit; most construction work and housing development; domestic passenger transport under 100 km; certain medical and dental services; consumer credit and personal loans from financial entities; specified capital goods; and some livestock and agricultural products. PwC's Argentina Corporate Tax Guide (2025) confirms this list as current.

The 27% elevated rate applies to utilities and related services when supplied to entities that are not exclusively residential users: electricity, natural gas, water and sewerage, telecommunications (mobile, landline, and internet), cable and satellite television. Residential consumers pay 21%, but a registered company receiving the same services is charged 27%. Avalara's country guide (2025) notes this distinction explicitly.

A 2.5% super-reduced rate covers certain printed and digital newspapers, magazines, and associated advertising services. Exports are zero-rated, and financial intermediation, education, and residential rentals are generally exempt.

Who must register, and what is the Monotributo exemption?

The Argentine tax code recognises two main registration categories for individuals and smaller entities.

Responsable Inscripto (Registered Taxpayer) is the general regime. Entities register with ARCA, receive a CUIT (tax identification number), and are required to charge IVA at the applicable rate on every taxable transaction, issue Type A or Type B electronic invoices that separately disclose IVA, file a monthly IVA return (now Form F.2051 under IVA Simple), and maintain a Digital VAT Book (Libro IVA Digital). There is no revenue floor for mandatory registration: any entity that makes taxable supplies in Argentina must register. Non-resident entities supplying digital services to Argentine consumers are also required to register under a simplified online procedure.

Monotributo (Regimen Simplificado para Pequenos Contribuyentes) is a simplified all-in-one monthly payment that consolidates IVA, income tax, and social security contributions into a single flat amount. Monotributo filers do not charge IVA separately on sales, issue Type C invoices showing no IVA breakdown, and file no monthly IVA return. Eleven progressive categories (A through K) are indexed semi-annually by ARCA. As of 2026 recategorisation, Category K limits are approximately ARS 108 million annually for goods sellers and ARS 53 million for service providers. Exceeding Category K requires immediate migration to the Responsable Inscripto general regime, at which point the full IVA credit-debit obligation applies. Re-entry to Monotributo after voluntary resignation or exclusion requires a three-year waiting period per ARCA rules.

How does the monthly IVA return work under IVA Simple?

ARCA introduced the IVA Simple system via General Resolution 5705/2025, effective voluntarily from June 2025 and mandatory for all registered taxpayers from November 2025. Form F.2051 replaces four older forms that previously co-existed: F.731, F.810, F.2082, and F.2002. The new system draws data automatically from ARCA's records -- electronic invoices already logged, SICORE withholding data, SIRE purchase data, and advance-payment information -- and presents a pre-filled draft for taxpayer review.

Returns are due monthly between the 12th and 22nd of the month following the reporting period, with the exact deadline determined by the last digit of the CUIT. Payment must be in Argentine pesos (ARS).

Perception and retention regimes sit alongside the standard monthly return. Under perception (percepcion), designated vendors add an extra IVA-linked surcharge -- typically 2% or 4% under RG 2408 -- to sale prices when transactions exceed ARS 122,000 (2025 threshold); this is collected from the buyer and remitted by the seller. Under retention (retencion), buyers who are designated withholding agents subtract a portion of the invoiced IVA before paying the supplier; withholding rates range from 50% to 100% of the invoiced IVA depending on the supplier's classification in ARCA's retention registry. Amounts withheld or perceived in excess of monthly liability generate a favorable balance (saldo a favor) that carries forward automatically or, for exporters, may be refunded.

What IVA obligations apply to foreign digital-services providers?

Since RG 4240/2018 (subsequently updated by RG 5794/2025 effective December 2025), all digital services consumed in Argentina and provided by entities domiciled abroad are subject to IVA at 21%. The relevant services include streaming, software subscriptions, hosting, online advertising, and technical support delivered via the internet.

Where the Argentine consumer is a Responsable Inscripto, that registered entity self-assesses IVA through the reverse-charge mechanism. Where the consumer is a final consumer or Monotributo subscriber, IVA is collected at source through payment intermediaries: local credit card and debit card issuers, and digital wallet operators, are required by ARCA to withhold and remit the 21% on behalf of foreign providers. ARCA's digital-services information page identifies this as the primary collection channel for cross-border B2C digital sales. Foreign providers may also register voluntarily with ARCA for direct remittance.

General Resolution 5794/2025 updated the digital-platform withholding thresholds: habitual activity is now defined as ten or more operations in a single month with cumulative value at or above ARS 750,000, or four or more monthly transactions reaching that cumulative threshold during any quarter.

How does Ingresos Brutos interact with IVA?

Ingresos Brutos (IIBB) is a provincial gross-receipts tax imposed on revenue from commercial and professional activities -- not on value added, but on total turnover. It operates independently of and in addition to IVA. Rates and rules vary by jurisdiction:

The City of Buenos Aires (CABA) applies 3% for most commercial and service activities, rising to 5% for taxpayers with annual gross revenues exceeding approximately ARS 1.84 billion (2026 tariff). Buenos Aires Province, Cordoba, and Santa Fe generally apply 3-5% depending on sector. Trade and services typically fall in the 4-6% range nationally; primary production and manufacturing may attract 0-2% or full exemption to encourage industry. Avalara's guide notes a general IIBB band of 4-6% for trade and services.

Businesses operating in multiple provinces apportion revenue under the Convenio Multilateral framework to avoid double-taxation. The SIRCREB system (Sistema de Recaudacion y Control de Acreditaciones Bancarias) unifies IIBB withholding across the 23 signatory provinces, typically withholding 2-4% from bank credits attributable to each jurisdiction.

IIBB and IVA are reported separately -- IVA to ARCA federally, IIBB to each provincial revenue authority (Direccion de Rentas or equivalent) -- creating a dual compliance calendar for most registered businesses.

Rate Comparison Table

E-invoicing and the CAE system

Electronic invoicing (comprobantes electronicos) is mandatory for all Responsable Inscripto taxpayers, VAT-exempt entities, self-employed workers, and exporters under ARCA resolutions (including RG 3749 and subsequent updates). Every invoice must carry a CAE (Codigo de Autorizacion Electronico), a unique code obtained in real time from ARCA's web-service system before the invoice is issued. Since December 2020, invoices also carry a scannable QR code linking to ARCA's verification portal. Recipients and auditors can verify any invoice's authenticity by scanning the QR.

Invoice types differ by the parties involved: Type A applies between two registered taxpayers; Type B applies when the seller is a Responsable Inscripto but the buyer is a final consumer or exempt entity; Type C is used by Monotributo subscribers and VAT-exempt parties for all transactions. Type E covers exports. From December 2025, Type M invoices (previously used in high-risk withholding situations) were eliminated by ARCA and replaced by Type A invoices bearing a specific withholding legend, per the streamlining announced in 2025.

All electronic invoice data flows into ARCA's Digital VAT Book (Libro IVA Digital), which in turn feeds the pre-filled IVA Simple Form F.2051, closing the compliance loop. Businesses with multiple transaction types or high volumes should work with a qualified tax professional experienced in ARCA web-service integration, as CAE request failures or mismatched invoice types generate automatic compliance alerts.

This page summarises publicly available information about Argentine tax rules as of June 2026 and is intended for general reference only. Rates, thresholds, and procedures are subject to change by ARCA resolution. Businesses and individuals operating in Argentina should consult a qualified tax professional for guidance specific to their circumstances.