- Argentina’s Economy Ministry set a maximum annual cap of ARS 27.2 billion for VAT credit refunds available to public utility companies whose tariffs are reduced by government subsidies.
- The cap was established under Resolution 1759/2026 and applies to refundable accumulated VAT balances generated from 2025, plus earlier balances still eligible and not previously covered by annual limits.
- Eligible credits must arise from purchases, manufacturing, processing, or imports (excluding automobiles) and from services or works used effectively in the subsidized activity.
- The refund is limited to the amount of VAT credit exceeding what would have been calculated if the subsidy amounts themselves had been subject to the applicable VAT rate.
- Allocation of the 2026 cap: ARS 24.5 billion for energy, ARS 2.5 billion for transport, and ARS 200 million for other sectors; claims must follow the former AFIP procedure.
Source: ambito.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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