Accommodations Go Tax Free for Foreigners Visiting Argentina
As of January 2017, Value Added Tax (VAT) on hotels and other accommodation will automatically be refunded for international visitors, increasing the appeal of Argentina as a destination and boosting the tourism business
The government of Argentina has announced that all international tourists visiting the country will receive a direct and automatic reimbursement of the Value Added Tax (VAT) from their hotel and lodging stays across the country.
The VAT refunds, combined with a favorable exchange rate, is expected to significantly increase the appeal of Buenos Aires and the country’s 23 provinces to foreign visitors, and improve competivity with other destinations.
These measures come on top of the move last year to waive the reciprocity visa fee for US citizens, already making visits to Argentina more appealing for the US market.
The new rule regarding VAT on accommodation is effective as of January 2 of this year, and impacts hotel stays and other forms of accommodations, and includes VAT imposed on breakfast services if they are part of the cost of lodging.
According to official forecasts, the measure is expected to lead to an additional 95,000 tourists in 2017 alone, building on an already strong tourism market that saw approximately 5.74 million international tourists visit in 2015. The boost in tourists is expected to lead to about 8,000 new jobs between direct and indirect impacts, with about $70 million US dollars brought into the economy. Argentina’s VAT rate on accommodations is 21 percent, and its removal for foreigners yields significant savings.
“Our national government has responded to a proposal that the tourism sector has brought forward during the last fifteen years to exempt non-resident tourists from having to pay VAT on lodging,” said Gustavo Santos, Minister of Tourism of the Nation of Argentina. “We seek to increase the competitiveness and the quality of Argentina’s travel offering as a whole. With this new initiative, we hope to encourage more visitors, which will in turn help boost jobs in the tourism industry.”
The rebate system for VAT for accommodations is available to visitors who can prove – with a valid passport or identification card - that they live abroad, and who pay for the services rendered with a non-Argentine credit card or via bank transfer from another country. The process is done at the time of billing, removing paperwork obstacles for the traveler.
The new administrative rule is a joint measure between Argentina’s tax authorityAFIP and the Ministry of Tourism.
Argentina is known for its vast range of accommodations for international tourists. These include luxurious five-star hotels in the capital Buenos Airesand other cities, to hotels fitting every budget. Lodging options unique to Argentina include rural estancias, or ranches in the province of Buenos Aires and throughout the country, along with vineyard resorts. Foreign tourists seeking competitively priced accommodations, already available throughout Argentina, will now find even more value for their money during a vacation or business trip.
For more information on tourism in Buenos Aires: https://turismo.buenosaires.gob.ar/en
For more information on tourism in Argentina: http://www.turismo.gov.ar/
For more information on the administrative order, visit:https://www.boletinoficial.gob.ar/#!DetalleNormaBusquedaRapida/156919/20161230/Turismo