Digital services start paying VAT in Argentina

The Argentine government officially announced, through decree 354/2018, the implementation of Value Added Tax (VAT) in digital services such as Netflix and Spotify, among others. The new regulation becomes effective on Wednesday, April 25.
According to the decree, the tax will be paid by consumers, either directly or through intermediaries. The rule establishes that if there is an intermediary that intervenes in the payment, it will act as an agent of perception and liquidation.
The VAT now includes streaming and download services of films, series, music and games, including those of chance. The VAT in Argentina is 21%. In this way, Netflix’s basic service (one screen in SD), which costs AR $ 129 (USD 6.3), will now cost AR$ 156 (USD 7.7).
Credit cards will act as VAT withholding agents, and will send the amount to the Federal Administration of Public Revenues (AFIP). Therefore, users will not have to make any changes to the services’ configurations.
In this way, Argentina follows other countries in the region, such as Colombia, which has already applied this measure in the tax reform of 2017.