Starting on June 27, 2018, a 21% Value Added Tax (“VAT” or “Impuesto al Valor Agregado –“ IVA” in Spanish) on digital services provided by non-resident suppliers took effect in Argentina. This tax applies to sales by Amazon Web Services, Inc. (“AWS”) to Argentine customers that are not registered for VAT.
If you are an Argentine customer not registered for VAT and you pay for AWS services via an Argentine credit card, the VAT will be collected by the Argentine credit card processor acting as payment intermediary, and you will see it as a separate charge on your card statement. Your AWS invoice will show AWS charges only, and it will not include the 21% VAT that will be added by your credit card processor. As VAT is not an AWS charge, you will not receive a separate VAT invoice from AWS. AWS does not control how your credit card provider applies and collects this VAT.
You can find more information regarding this change at the Argentine Tax Authority website here.
If you are an Argentine customer, but you pay for AWS services via wire transfer or a credit card not issued by an Argentine provider, we suggest you reach out to the Argentine Tax Authority or your tax advisor with any questions related to the application of VAT in your country.