Joint Resolution (AFIP-AGIP) No. 4649/2019 (the "Resolution") was published in the Official Gazette on December 10, 2019. The Resolution regulates the procedure to pay Gross Receipt Tax ("GRT") on digital services rendered by non-resident parties in the City 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.
Complementary Resolution issued by the City of Buenos Aires Tax Authority ("AGIP")
The Resolution is completed by City of Buenos Aires Tax Authority ("AGIP") Resolution No. 312/AGIP/19 ("R 312"), published the same day in the Official Gazette of the City of Buenos Aires.
Among other issues, R 312 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 AGIP, (ii) the consumers of digital services are domiciled in the City of Buenos Aires and (iii) the services providers are subject to VAT collection.
R 312 also establishes that non-resident providers of digital services will be able to request the exclusion of the List of Providers if they consider that the requirements to be included are not met.
Entities facilitating or managing payments will have to start to act as a collection agent as of March 1, 2020.