CERTIVA: VAT Tax Credit Certificates Under RIGI

General Resolution 5589/2024 was published in the Official Gazette on October 22, 2024. Through it, the Argentine Tax Authority creates a new web system called “CERTIVA - VAT Tax Credit Certificates,” within the framework of the Incentive Regime for Large Investments (RIGI), provided for in Law 27742.

The purpose of this system is to gradually replace the current procedures for managing said certificates. These certificates must be issued by the beneficiary of the RIGI for each invoice or equivalent document received to pay the total amount of the value added tax (VAT) invoiced and, if applicable, the corresponding collection of the tax. The certificates will be issued once the general and specific systemic controls and validations are passed.

 

1. Issuance of the certificate by the RIGI beneficiary and acceptance by the recipient.
    

The Resolution contemplates a series of requirements both the issuer of the certificate and the recipient (i.e., the supplier of the goods and services) must meet.
 

1. The issuer must comply with all its tax obligations and not have enforceable debts with the Argentine Tax Authority.
2. The issuer must issue a Tax Credit Certificate for each invoice or equivalent document received from its suppliers to pay the total amount of VAT invoiced the supplier invoices and, when appropriate, the corresponding advance payment of such tax.
3. The system will systemically control the data the issuer uploads and enable the uploading of the certificate.
4. The recipient of the Tax Credit Certificate may check and/or accept the certificates issued in its name through the web service “CERTIVA - VAT Tax Credit Certificates.” To recognize the amounts in them, the recipient must also inform the invoice or equivalent document for which the certificate was issued.

Each certificate must be associated with a monthly tax period, which must be determined considering the month and year it was issued. However, certificates issued up to the 10th of each month will be considered part of the monthly tax period immediately before.

 

2. Recipient’s use
    

The Resolution also specifies the steps the recipient of a Tax Credit Certificate must follow to use the amounts in them for:
 

1. offsetting amounts arising from VAT withholding and/or collection regimes by using the amount of the Tax Credit Certificates,
2. paying debts for its own federal taxes (other than VAT),
3. paying debts for social security contributions,
4. paying tax liabilities of a third party to which the recipient has been designated as jointly liable.

If the recipient of the certificate complies with all its tax obligations and does not have pending enforceable debts with the Tax Authority, it may also request a refund in cash of the amount of the certificates, or to transfer the certificates to a third party.  If it transfers them transfers to a third party, the recipient must also accept the certificate through the Tax Authority’s system.

 

3. Issuance of certificates for goods and services import transactions

In the case of RIGI beneficiaries importing goods, at the time of loading the Tax Credit Certificate, the system will automatically register the Argentine Tax Authority as the recipient of the certificate and the amount of the certificate will be credited in the Malvina Information System (SIM), and it will not be necessary to follow the procedure described above for to issue the certificate.

Moreover, the General Resolution regulates the issuance of certificates related to import operations of services, distinguishing between operations carried out with the intervention of financial institutions and those carried out without the intervention of financial institutions. The Resolution clarifies that the certificates must be considered VAT payment vouchers under the terms of General Resolution 549 (as amended).
 

4. Adjustments

Tax Credit Certificates may be subject to different adjustments because of:
 

1. credit notes the recipient of the certificate issues (where the one affected will be the recipient),
2. annulling of the certificate due to error or incorrect data (before the recipient accepts it, unless the situation is previously reversed),
3. annulling the certificate due to controls the Tax Authority carries out (where the subject affected is the recipient),
4. rejection of the certificate by the enforcement or tax authority (where the subject affected will be the issuer or the recipient, as the case may be).

The Tax Authority will notify the parties affected by these adjustments (issuer or recipient) through the Electronic Tax Address. This notification will include the cause and amount of the adjustment.

The adjustments may cause:
 

1. the annulling of the amounts credited in the Tax Account System that is pending of use,
2. the obligation to reimburse amounts unduly or excessively refunded and to pay interests and applicable fines,
3. the annulling of amounts transferred to third parties and their subsequent use, with the obligations and interest being reinstated as soon as they fall due,
4. the annulling of offsets of obligations or of allocations to social security resources,
5. the recovery of taxes paid in default with their corresponding accessories and fines.