Argentina to attract foreigners by cutting 21% tax on hotels

Source: TravelWeek

The Mauricio Macri government of Argentina has issued a decree that refunds the 21% VAT (value-added tax) for accommodation services for foreign visitors in an attempts to attract more visitors.

This is part of an ambitious tourism plan that aims to generate 300,000 jobs and raise international arrivals to 9 million and spending to $8bn USD by 2020.

So far this year, tourism arrivals have fallen by 6.3%.

According to the new regulation, foreigners will continue to be invoiced the same values that exist today. However, VAT invoiced for hotel services will be returned in a “direct and automatic” way on debit and credit cards issued abroad.

Goway says the new VAT exemption for foreigners means big savings on accommodation in Argentina.


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