Argentina to start taxing Netflix

Argentina’s Federal Administration of Public Revenue (AFIP) announced its intention to start charging taxes on digital platforms such as Netflix and Spotify, among others.

According to La Nación, the agency wants the credit cards of users to act as retention agents. “We are going to tax Netflix, we will do it through the plastics with which the subscription is paid,” said AFIP head Alberto Abad.

For this project to materialize, it must be approved by Congress. “There has to be a law, it has to be voted on and it has to be approved,” AFIP sources said to La Nación.

Asked by the Argentine daily, Netflix replied that “it collects and pays taxes wherever it has a legal obligation to do so.”

The city of Buenos Aires had already taken measures on this issue. In 2014, the government of Buenos Aires City, then in charge of Mauricio Macri, the current president of the country, won a judicial dispute and imposed on Netflix, Spotify and other companies foreign companies with services in the country, a 3% tax over the purchase value of their products.

Earlier this year, Colombia approved a tax reform that includes charging VAT (19%) to digital services. Meanwhile, Uruguay is also planning to move this way according to its recently presented Accountability project.