Decree No. 354/2018 was published in the Official Gazette on April 24, 2018 (the Decree), regulating the VAT payment mechanism for digital services rendered from abroad.

The Decree establishes that the tax will be in charge of the end customer, whether directly or by means of a collection agent. As a result of this, there are two potential scenarios for payment purposes:

  1. if there is an intermediary with residence or domicile in Argentina involved on the payment process, the intermediary will act as a collection agent. The Decree also establishes that the collection agent is required to collect the VAT if such collection agent intervenes in the payment of a transaction with a foreign provider of digital services included in a list to be created by the Federal Tax Authority (FTA).
  2. If there is not an intermediary with residence or domicile in Argentina, or this intermediary does not have an obligation to act as a collection agent, the customer will have to pay the tax, under the terms and conditions to be established by the FTA.

The Decree will enter into force as from April 25, 2018. When an intermediary with residence or domicile in Argentina is involved on the payment process, the Decree will produce effects as from the moment the providers of digital services lists are published by the FTA.