Argentina levies 3% Turnover Tax on foreign B2C electronic services
Buenos Aires has made e-services provided by foreign internet services companies subject to Turnover Tax from the start of 2015.
Generally, foreign companies with no permanent establishment are not subject to Turnover Tax. The new levy will be administered as a Withholding Tax, and due on payments by debit or credit cards.
This new move is aimed at taxing internet services, online gaming, streaming or downloads of music or videos etc. It is similar to the 2015 EU B2C digital VAT changes.
Turnover Tax is levied by the 24 provinces of Argentina, and varies between 3% and 5%. There is no right to deduct tax incurred further in the production chain.