How to know how much VAT I must pay: VAT Exclusion Certificate

As you well know, part of the support of the state comes from different taxes or tax rates. Since these are pre-established in the local laws of each country.

This state collection and support system has been implemented over the years. At the same time manages to be one of the main methods administration and support for a country.

It is normally applied within the prices or costs of an article or object that we want to buy or rent. As well as through the declaration of goods and services before the state.

In Argentina these taxes are usually called VAT and it is the main one to be able to maintain the country with respect to its economy. That is why today we will show you a simple and practical guide to process the VAT Exclusion Certificate in Argentina.

What is VAT and what does it mean?

To start in this topic it is necessary to handle all the terms that is why you should know what it means VAT. They are the initials of value added tax or also called value added tax.

This, as its name specifies, is a tax that is assigned or taxed to the producers or objects that we wish to acquire. The price of this plus the percentage of the tax that is applied to the total cost is used for registration with the authorities of the same.

In addition, this tax usually covers a 40% of the resources obtained for the support of the State or nation. With it, it is possible to maintain public goods such as squares, public roads, among others.

How to know how much VAT I have to pay in Argentina

Generally, when making a purchase or rent within the Argentine country, an invoice is issued. Is It will allow you to know what is the current cost of VAT applied for the final price of said article.

At the same time it also allows know in a structured and conceptualized way each of the quotes and costs within the final payment of the product. That is why we can know what the current cost of the VAT.

It is important to mention that the sum of VAT to the total or net cost of the product is usually the same or regularized in the same way for all products. But however there may be variations depending on the type of product you want to buy.

What are the products exempt from VAT

In case you didn’t know, different countries worldwide have taken the well-being of their inhabitants seriously. In this way they began to take various measures on taxes for its inhabitants.

Recently in Argentina initiative has been taken to exempt some of his products VAT so that the price of it is more accessible. The items to which this rule was applied belong to the basic food basket.

Below we will mention the products that are exempt from VAT:

  • Bread.
  • Milk.
  • Sunflower oil and mixtures for purposes.
  • Dry pasta.
  • Rice.
  • Wheat flour.
  • Polenta.
  • Rebozador or Breadcrumbs.
  • Yerba Mate.
  • Cooked Mate.
  • Tea.
  • Canned Fruit, Vegetables and legumes.
  • Yoghurt.
  • Sugar.

It is important that you keep in mind that not all the products in the basic basket food are exempt of VAT. Only those mentioned above maintain this rule.

What is the VAT exclusion?

We have previously mentioned what the VAT And why does this tax work? The Argentine government to predestined a service which functions to exclude or release to the citizens of the payment of this tax.

Since these are currently very high costs for some people, this service has been enabled. However, let us remember that the exclusion will simply allow the citizen not to make or be exempt from paying the VAT.

Remember that he VAT is a tax added to the final price of a product which It is intended for the capital of the governorate or state. And it is also used to carry out public works and their maintenance.

How to obtain the VAT exclusion certificate

To start the process it is extremely important that you are clear that it is the VAT Exclusion Certificate. It is simply an accreditation or recognition granted by the government.

This will allow you have a total or partial exclusion from VAT collectionas well as the withholding regimes of the payments of the VAT. It should be noted that to process this certificate you must meet certain requirements and steps to do it correctly.

Requirements

To process the certificate you must comply with the following errands or requirements to carry it out satisfactorily:

  • Cover correctly with the person in charge or representative registered in the Value Added Tax (VAT).
  • Document that records all the economic activities carried out by the applicant (updated if applicable).
  • Keep updated the domicile or residence declared fiscally.
  • Comply with the obligatory duties of presentation of the VAT Affidavits. These will correspond to the last 12 fiscal periods or that, as the case may be, must be presented from the beginning of the activity and that are expired prior to the application date. *
  • Have no debts or penalties with respect to the AFIP required on the application date.
  • Have a freely available balance, which must be the equivalent of the twenty%As minimum, to the average of the tax determined in the last 12 affidavits.
  • dispose of Print Authorization Code (CAI)this must be in force at the time of making the request for the process.
  • Submit a mandatory sworn statement with the information established in the General Resolution 3293 and the complement. This is according to the last fiscal period that is expired prior to the application date.

The requirement that at the end leads * it means that it will apply with sworn declarations of social security resources, income taxes, presumed minimum income and personal assets.

Steps to follow

To process this certification it is necessary that you follow to the letter with the instructions or steps that we will describe below:

  1. The first step is to request through an online data transfer through the official website of the AFIP. You select the option Access with Tax Code in the service section «VAT Ret/Percep Exclusion Certificates and VAT Percep Exclusion Certificates – Customs».
  2. Once the previous step has been completed, the web system will provide you with a receipt which will be the acknowledgment of receipt.
  3. To end 2 days later You will have to enter again to see the results of the process.

To enter the page of the AFIP select the following link: AFIP Official Page.

Consult VAT Exclusion Certificate

As mentioned before, this certificate can be consulted by accessing the official AFIP website. There you will log in with your tax code and the VAT Exclusion Certificate will automatically appear on the screen.

Finally, remember to take into account all the aforementioned requirements and thus avoid possible inconveniences when requesting it. In addition, it will expedite the process of obtaining it.

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