Argentina’s government presented a tax reform project that includes taxing digital services from foreign companies available in the country, such as Netflix and Spotify. If the bill goes ahead, these companies will have to pay 21% VAT (Value added tax).
In a talk with journalists, Undersecretary of Public Revenue, Andrés Edelstein, confirmed that digital services provided by foreign companies will begin to pay taxes in the country. In Latin America, Colombia already applied this measure in the tax reform enacted early this year.
This way, it is likely that companies will transfer this tax to consumers, which would increase the price of these services. As reported by La Nación, credit cards must act as VAT withholding agents. If approved, the tax reform will begin to be effective in 2019.