Delayed withdrawal of services export charge finally goes ahead
Argentina is to withdraw the service export customs duties tax of 5% from 1 January 2022. The tax was introduced in 2018 at effectively 12% had already been cut to 5% in 2020 in order to stimulate exports and generate foreign currency. The original plan had been to scrap the levy in December 2020.
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The Ministry of the Economy is aiming to help develop the knowledge economy – IT, copyright, intellectual property, and design – which has lobbied hard for the ending of the measure. They account for over $5billion in annual exports to the US and European Union. It is the second largest export sector for Argentina.
For VAT, exports are treated as nil-rated. The current VAT rate in Argentina is 19%.
