Buenos Aires, Argentina


Argentina has   announced   a very tourist-friendly move. As of January 2, 2017, VAT (Value Added Tax) as regards lodging will be refunded to foreign tourists. This measure seeks a greater flow of visitors, greater income of foreign exchange, and the creation of new jobs.

This measure reaches the services of lodging and breakfast, if included in the price of the lodging. Other services that the guest requests in the hotel must be invoiced separately with type "A" or "B" vouchers. The estimated impact of this measure, after a year of implementation, is 95 thousand new tourists and a revenue of more than 70 million dollars. The new approach is also expected to generate directly or indirectly 8,000 new jobs.

"The national government has just approved an initiative promoted by the tourism sector: The reimbursement of VAT for accommodations to foreign visitors. Today it is already a fact", said the Minister of Tourism of the Nation, Gustavo Santos. He added: "The legislation we are promoting includes all contracting in the area of accommodations of non-resident tourists and includes direct purchases such as those made through travel agencies. Together we seek to have a more competitive tourism industry".

The return of VAT for accommodation services will be made to tourists who through their passport or ID card prove their residence abroad and that pay by a credit card issued abroad or by a bank transfer originated outside Argentina. The requirement for the hotel to be eligible is that it must be registered in the AFIP as an established resort. Travel agencies too, must also be registered before the tax office and approved by Argentina's Ministry of Tourism.

In the specific case of the groups, incentives, and congresses niche, the passengers manifest along with their passports scans, should be sent at the time of the booking, and the transfer of funds must come from a bank abroad. This VAT rebate aims to regulate an initiative that improves competitiveness, since foreign tourists will automatically pay a lower rate for accommodation services in Argentina.

This measure facilitates the workload of tax authorities since it is based on the use of electronic invoicing. This initiative was implemented by the General Resolution 3971 of the Federal Public Revenue Administration and the Ministry of Tourism of the Nation, which was published on December 30, 2016 in the Official Gazette.