21% VAT will be reimbursed to foreign visitors on hotel rates in Argentina.
As from January 2, 2017, foreign tourists will be reimbursed the 21% VAT for accommodation. This measure aims at a greater flow of travelers, greater income from foreign exchange and the creation of new jobs.
The estimated impact, after a year of application, is of 95 thousand new tourists, with an income of more than 70 million dollars, and is expected to generate almost 8 thousand new direct and indirect jobs.
“The legislation we are promoting includes all contracts in the area of accommodation of non-resident tourists and includes both direct purchases and via travel agencies. We aim that the entire chain of Argentine tourist value is competitive and of quality, “said Santos.
The VAT refund on accommodation services will be applied to people who can prove their residence abroad by means of their passport or ID card and who pay by a credit card issued abroad or a bank transfer originated outside the boundaries of Argentina.
The hotels and properties must be registered in the AFIP as accommodation services. And the agencies must also be registered and qualified by the National Tourism Ministry.
The VAT rebate proposes the regulation of a system which will improve competitiveness, as foreign tourists will automatically pay a lower rate for the accommodation service in Argentina.
Furthermore, this measure facilitates the inspection, since it is based on the use of electronic invoicing, facilitating the control of the sector by AFIP and covers the whole of the accommodation commercial chain and incorporates the direct purchase by the tourist.
The implementation was registered in the Resolucion Conjunta General 3971 of the Federal Public Revenue Administration and the National Ministry of Tourism.