The Federal Public Revenue Administration (Afip) announced the digital services that must pay the Value Added Tax (VAT) in the General Resolution 4240, published this Monday (14.5.2018) in the Official Gazette.
When the provision of digital services is paid to resident subjects or domiciled abroad, which are part of Section A of the aforementioned list, through entities in the country that facilitate or manage payments abroad, these must act as collection and settlement agents of the tax and pay the corresponding amount to the AFIP as long as the borrowers do not have the status of registered responsible in the value added tax.
In case the borrower makes the payment for the digital service through credit card and/or purchase, the collection of the tax must be carried out in the Summary collection date and/or settlement of the card in question, even when the resulting balance is paid partially, in which case the payment must be made in full on the date of the first payment.
The amount of the perception must be recorded - in a detailed manner - in the aforementioned document, which will constitute proof justifying the suffered perceptions.
If payment for the digital service is made through debit card, prepaid or similar, the collection of the tax must be carried out in the debit date in the associated account or prepaid account.
Sufficient proof of the perceptions suffered will be the extract or bank statement or equivalent document of the account affected by the debit card, prepaid card or similar system, when these detail the amounts received in a discriminated and individualized manner by operation.
When the digital service is paid for through a subject grouping or aggregating means of payment, the collection must be made on the date of receipt of the funds by the aforementioned intermediary in payment for the digital service contracted by the borrower.
The amount of the perception made must be recorded - in a detailed manner - in the summary and/or settlement and/or equivalent document received by the borrower, which will constitute proof justifying the payments incurred.
Entities in the country that facilitate or manage payments abroad must also act as a tax collection and liquidation agent and pay the corresponding amount to the AFIP, when the following conditions are met jointly:
1. The recipients of payments are subjects that are part of Section B of the list.
2. It is a payment abroad for a maximum amount of US$10 or its equivalent in another currency.
3. The digital service providers do not have the quality of registered responsible in the value added tax.
Perception agents will be able to consolidate operations in a single record of monthly perception by each borrower, in which case the date of the perception to be recorded will be the last day of the month being settled.
The perceptions practiced will have, for the subject subjects, the character of tax paid.
When the payment to the foreign provider does not involve an intermediary resident or domiciled in the country, or when the intermediary involved in the payment abroad should not act as a collection and settlement agent, they must pay the corresponding tax up to the last day of the month in which it was made payment to the foreign provider, using the procedure detailed below.
To determine the amount of tax to be paid, borrowers must: apply the tax rate on the net price of the provision of the digital service resulting from the invoice or equivalent document issued by the foreign provider.
When there is no invoice or equivalent document, or they do not express the current value in the market, it will be presumed that this is the computable value, unless proven otherwise.
The payment of the tax, as well as - if applicable - its compensatory interest, must be made through the electronic funds transfer procedure.
When the borrower considers that he is not entitled to the payment because it is not a digital service provision, he may request the refund of lien perceived.
To assist in the identification of foreign digital service providers, a system will be established information regime by foreign payment intermediaries.
The rule will come into force on 30 working days starting this Monday.
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