Argentina – Reimbursement of hotel services VAT to foreign tourists – entry into effect

Decree 1,043/2016, published in the Official Bulletin of 28 September 2016, rules on chapter 43 of the VAT Law (as modified by Law 25,406/2001, chapter 1) and chapter 2 of Law 25,406/2001 to determine the rules for the entry into effect of the reimbursement of VAT on hotel services to foreign tourists.

The reimbursement of VAT in such cases was foreseen by Law 25,406/2001 and was scheduled to take effect on 1 January 2001 (for hotels established in provinces with borders with other countries) and on 1 January 2003 (for the rest of the country). However, in view of the lack of regulations, the rule did not come into effect as scheduled.

In this respect, Decree 1,043/2016 not only states that the Argentine Revenue Service is the competent authority for applying the rule, but also establishes that it must put into place, within 60 days, the administrative procedures necessary to make the VAT reimbursement effective.

Decree 1,043/2016 also establishes that the VAT reimbursement applies to hotel services (including breakfast) billed and rendered to foreign tourists in Argentina, whether contracted directly by customers or by tourism agencies, provided that the payment method used involves the transfer of the billed amount from abroad, and provided that the customer is identified.

No reimbursement will be granted in respect of the sale of goods or other services rendered together with the hotel services, which are billed separately.

Finally, Decree 1,043/2016 sets out that foreign tourists are those that enter Argentine territory without having their habitual residence there and without exceeding the terms established in the Migratory Law.


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