Taxes
Argentina — Tax: Vat
Argentina's standard VAT (IVA) rate is 21%. A reduced 10.5% rate applies to certain items such as housing construction and interest on consumer loans, while an increased 27% rate applies to utility services (telecom, gas, water, sewerage, energy) not supplied to a residential property. VAT is collected by AFIP and generally applies to sales of goods, services, and digital transactions supplied to customers in Argentina.
VerifiedCommunity sourcePwC Worldwide Tax Summaries — Argentina, Individual/Corporate — Other taxes (VAT)Last reviewed: 2026-08-31
Why this matters
The standard 21% rate affects everyday cost of living and business pricing, and the 27% surcharge on non-residential utility services is a common surprise for anyone running a small business or renting commercial space.
Key facts
- Standard VAT rate: 21% -- applies to most goods, services, and digital transactions.
- Reduced rate: 10.5% -- applies to specific categories including housing construction and interest on consumer loans from financial institutions.
- Increased rate: 27% -- applies to telecom, gas, water, sewerage, and energy services not supplied to a residential address (e.g. commercial use).
Steps
- Determine if VAT registration is required — Businesses selling taxable goods/services in Argentina generally must register for VAT with AFIP; specific turnover thresholds and the small-taxpayer simplified regime (Monotributo) can exempt very small operators from standard VAT registration.
Common mistakes
- Assuming a single flat VAT rate -- Argentina has a 3-tier structure (10.5% / 21% / 27%) depending on the category of goods/services.
- Not realizing utility services billed to a commercial/non-residential address carry the higher 27% rate.