Federal Tax Authority (FTA) General Resolution 4101-E was published in the Official Gazette on 8 August 2017, regulating the mechanism to reimburse VAT billed on capital goods or infrastructure, electro mechanic and assembly investments made under the term of the promotional law for the use of renewable energy sources in the production of electric energy.

1. Scope

The Resolution is addressed to VAT registered taxpayers that make investments on electric energy production projects in Argentina, based on the use of renewable sources, who can request its compensation against other federal taxes or the refund of VAT invoiced on the purchase, manufacturing, creation or importation of capital goods, or the making of infrastructure, electro mechanic and assembly works under the terms of Law 26,190 (federal promotion for the use of renewable sources of energy for purposes of producing electric energy).

2. Requirements

For purposes of requesting the refund of the amounts paid for VAT, the interested parties will have to meet the following requirements:

a) Obtain the inclusion certificate of the "Regime for the Promotion of Renewable Energies".

b) Obtain the approval of the investment project by the Ministry of Energy and Mining, and the approval of the project expenses by the Under Secretary of Renewable Energies.

c) Capital Goods must be a part of the assets of the owner of the Project upon filing the application for the reimbursement.

d) Comply with the tax registration duties (Tax ID, Tax Address, VAT/Income Tax registration, etc.) and the filings of the tax returns.

3. Procedure

Application to the regime must be done electronically, through the FTA website. To that end, the interested parties must provide information about the invoices that support the project expenses.

The authorized amounts will be communicated by the FTA within 15 days as from the moment the filings is declared admissible. This amount can be credited against other federal taxes or be reimbursed if the taxpayer does not register any debts and complies with its formal tax obligations.