Reimbursement of VAT credits for purchases of fixed assets
General Resolution (AFIP) 4581/2019 establishes the reimbursement regime for VAT credits for fixed asset investments. The reimbursement regime is intended to improve the cash flow of taxpayers who have invested in fixed assets.
This resolution’s provisions establish the requirements, terms, and forms needed for taxpayers registered for VAT to request the reimbursement of VAT credits arising from the purchase, construction, manufacturing, elaboration, or final importation of fixed assets (except for automobiles). A taxpayer can make a VAT credit reimbursement claim only after the VAT credit is outstanding for six consecutive fiscal periods. (The fiscal periods are counted as from the period in which it was offset, or if appropriate, once the investment is made if the fiscal credit balance was maintained.)
The following taxpayers are not eligible for the reimbursement regime:
- Taxpayers that are declared bankrupt (and no provisions have been made for them to continue in business);
- Taxpayers who are criminally accused or convicted of tax evasion.
It is worth noting that Argentina’s revenue service must approve requests for the reimbursement of the VAT credit balance and the reimbursement will be limited to an annual maximum amount to be established in the Budget Law.