Understanding VAT Withholding by RG 3164 for Argentina

According to legal resolution RG 3164/2011 introduced by the AFIP (Administración Federal de Ingresos Públicos), companies must withhold VAT taxes from payments to suppliers who meet the following conditions:

• Have monthly accumulated transactions greater than ARS 8000.

• Provide any of the following services:

  • Cleaning services

  • Security or investigation services

  • Collection of household waste services

The company that has VAT RG 3164 tax code configured withholds VAT only for these transaction types. In all the cases different from these conditions, the VAT is 0 percent.

The system generates the withholding for RG 3164 based on the voucher paid. If two vouchers are paid in one payment, the system generates two withholding documents. The only exception to this are:

• First payment that exceeds the minimum

• Manual payments

In these cases, the system generates one withholding by payment.

In the case of a voucher's partial payment, the system withholds VAT for the total voucher in the first payment. In such a case, future payments for the same voucher do not generate withholding.