Joint Resolution (AFIP-ARBA) No. 4632/2019 (the Resolution) was published in the Official Gazette on 21 November 2019. The Resolution regulates the procedure to pay Gross Receipt Tax (GRT) on digital services rendered by non-resident parties in the Province of Buenos Aires.
To that end, the Resolution establishes that payment and reporting of the collected amounts will have to be made under the forms, terms and other conditions established by General Resolution 2233 (SICORE), providing an option to consolidate all operations on an unique monthly reporting for each consumer.
The Resolution is completed by Province of Buenos Aires Tax Authority (ARBA) Resolutions No. 37/19 (RN37) and Resolution No. 38/19 (RN38), published in the Official Gazzette of the Province of Buenos Aires on 21 November 2019.
Among other issues, RN38 establishes that GRT payment will be made by the consumer of the digital service. Entities that facilitate or manage payments abroad (purchase or credit cards, debit cards, prepaid cards or other similar payment methods) of digital services will have to act as a collection agent of the tax, in their capacity as substitute taxpayer.
Such entities will have to make the collection of the tax when (i) the services providers are included on the List of Providers to be published by ARBA, (ii) the consumers of digital services are domiciled in the Province of Buenos Aires and (iii) the services providers are subject to VAT collection.
RN38 also establishes that non-resident providers of digital services may register as GRT taxpayers on the jurisdiction, being able to request the exclusion of the List of Providers if ARBA deems that convenient.
Entities facilitating or managing payments will have to start to act as a collection agent as of 1 December 2019.