Client alert

Renewable Energy: new regulations on VAT crediting

On August 9th, the Argentine tax authorities issued General Regulation (AFIP) N° 4101-E implementing the procedure for applying for the expedited VAT reimbursement or credit against any other national tax relating to the purchase, production or import of new fixed assets or infrastructure works performed within the framework of the Promotional Regime on Renewable Energy Sources, created by Law 26,190 amended by Law 27,191 (the "Regime").

Taxpayers benefited by the Regime may request the VAT reimbursement or credit against other national taxes assuming they meet the following:

i)  they hold a "Certificate of Inclusion" in the Regime, including the VAT expedited reimbursement;

ii)  the investment project and the expenditures relating to the project have been approved by the Undersecretariat of Renewable Energies; and

iii)  the fixed asset or infrastructure work giving rise to the VAT credit is already a recorded asset of the applicant taxpayer (ownership requirement), and

iv)  among other tax compliance check-ups, they hold evidence of compliance with the statutory guaranty requirement for the 100% of the benefit.

In this regard, the regulations set forth that applicant beneficiaries must provide information reflecting the payments made in connection with the project through the tax authorities website[i], application "Ley 26.910 - Régimen de Fomento Nacional para el uso de fuentes renovables de energía".

Once the information is validated by the tax authorities and the Undersecretariat of Renewable Energies, the taxpayer may apply for the VAT reimbursement or tax credit against other national taxes, through the referred website.  The application should include a statement relating to the transactions that originate the benefit along with a special affidavit certified by a public accountant confirming the existence and legitimacy of the VAT credits.

Upon the request, the tax authorities will verify the information provided and, if there are no objections, they will issue a resolution approving the benefit. If the applicant has requested the VAT credited against any other national tax, a second application is needed through the tax authorities' website, application "Cuentas Tributarias", "Transacciónes" and finally "Compensación".

The regulations entered into force on August 8th and will be effective for taxpayers requesting the benefit as from August 10th onwards. 

[i] Taxpayers should access the tax authorities website with their tax ID number and password.  

This Newsletter is a free service provided by Mitrani Caballero Ojam & Ruiz Moreno for informative purposes only. 
For further information, please  contact our Tax Practice Area. 

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