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Argentine Court Holds that the VAT Base for Imported Services Must Include Grossed-Up Income Tax

|Approved Changes|Argentina
Argentina

In a recent ruling, Argentina's Supreme Court of Justice has held that grossed-up income tax to be withheld by the Argentine recipient for payments for service from a non-resident supplier must be included in the VAT tax base for imported services. This applies even when the service price is invoiced separately from the tax amount to be withheld.

Services provided by nonresident suppliers are subject to Argentine VAT if they are consumed or used for profit in Argentina.

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