Argentina augmented its Perception VAT Collection Regime a short while ago. The move was reportedly made to ensure a more effective tax administration. The expanded VAT now includes food sales. It also covers various products for human consumption. Products like beverages, cleaning items, and personal hygiene units are some examples.
The Federal Administration of Public Revenue (AFIP) initiated this via Resolution No. 5329/2023. This was already put into effect in early February 2023.
This latest resolution plans to push further the government’s new system. It calls it the “Régimen de Percepción del Impuesto al Valor Agregado.” It wants to expand the regime to include categories related to food. It now includes items for human consumption and beverages. Products used for personal hygiene and cleaning are also under the new regime.
Residents providing invoices on these provisions must make sure they’re compliant. They must have the requisite document data. These will stand as evidence of the collection. It will also become used for final value added tax calculations.
The Extent of the New VAT Collection Regime
The VAT Collection Regime in Argentina is its latest tax program. It has the seller or “Collection Agent” charges the consumer an extra amount on top of the sale price. This means the supplier charges this fee with the item’s sale value. It includes the product price and the VAT.
The newest VAT regime forces VAT-taxable individuals to act as collection agents. They become agents when they sell food products, beverages, and personal hygiene items. They will also do the same when selling cleaning products. There are a few exceptions to this scheme. For example, meats and fruits are now exempted.
Bread made from wheat flour is also covered. Taxable individuals registered for VAT reasons are also put through the same scheme. This happens when they get the products.
The collection regime only applies to transaction amounts going beyond ARS 3000. This amount is then computed by adding 3% to the net price of the process that comes from the invoice. But the percentage becomes 1.50% if operations are then taxed with a rate equal to 50% of the usual VAT tax rate.
Proof of Perception Via Invoices
Payments done under this scheme must use the Withholding Control System. The taxpayer will use code 602 when reporting via SICORE.
This resolution also emphasizes the importance of invoices or a corresponding document. These are the only acceptable documents. They can become proof of VAT perception payments. Invoices must show the amount received using a discriminated manner. Documents must also make specific mention of the regime.