Understanding Argentina VAT Nexus Rules

What is nexus, and how does it work in Argentina?

Nexus is the connection between your business and a jurisdiction that creates a tax obligation. In Argentina, nexus rules for VAT registration work differently from some other countries, such as the United States, where economic nexus thresholds based on sales volume are common.

Physical Nexus

In Argentina, a business must have a physical nexus, meaning a physical presence in Argentina, in order to be required to register for IVA/VAT. Physical presence includes activities such as:

• Having an office, branch, or place of business in Argentina

• Having employees or agents operating in Argentina

• Owning or leasing property in Argentina for business purposes

Economic Nexus / Non-Resident Remote Sellers

Argentina does not currently impose an economic nexus threshold for non-resident remote sellers of digital services (such as SaaS). A non-resident business that supplies SaaS services remotely to customers in Argentina, and has no physical presence in Argentina, is not required to register for IVA/VAT in Argentina.

In these cases, VAT on the digital services is typically handled by the payment service provider or through reverse charge by the Argentine buyer.

Collected Tax Nexus

If your business has already collected tax in Argentina without meeting the physical nexus requirement, please reach out to the Kintsugi support team for guidance on next steps.

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