Can a business have import tax refunded?

[Anders]

With all the talk of inflation it may sound crazy, but we are doing it: Coming back to Buenos Aires to set up a small business. Spent three months there yearly this year and liked it so much we want to go back.

Simple question: We will need some computer hardware to set up office in BA but, as you know, the import tax makes this crazy expensive in Argentina.

If you are a business in Argentina, will you still have to pay this import tax? In the EU, you have VAT refunded if you purchase items as a business. Does the same apply to import tax in Argentina?

If yes, does your company need to be registered in Argentina or is it sufficient to prove that the hardware will be used for business purposes?

Hope there is a solution so we don't have to pay for about 100 kilos worth of excess bagage on the flight

I have heard that if you ship your European equipment to Argentina, the customs in Ezeiza would like to see you, and a few of your one hundred dollar bills, before you are allowed to take your IT-stuff back to your new BA office.

 

[steveinbsas]

Import duties are completely different from the IVA (the Argentine equivalent of VAT) and I don't think it makes any difference if the equipment is imported for business or personal use. You will not be charged IVA on items purchased abroad and shipped to Argentina, just the import tax. The "consumador final" is the one who pays IVA in Argentina. If you buy equipment to use in your business here I believe you ave to pay the IVA unless the "equipment" is purchased for resale. I imagine this "exemption" is widely abused here (it is in the US).

It may be possible to "ship" the equipment into the country without paying duty if you are currently applying for temporary residency and it is included in your inventory of personal property, but I believe HotYogaTeacher did this and still had to pay, and pay, and pay (with the "help" of a customs broker). I have no opinion about bribing a customs official, but based on what others have posted here, if you are going to start a business in Argentina bribery is something you may face more often that you ever imagined, especially if your business is successful.

Even if you bring "used" equipment with you on the flight you could be charged duty if customs thinks it isn't really used but others have posted that they've brought a lot of "used" computer equipment with them without any problems. I think it's much "safer" to bring your computer equipment with you on the plane as opposed to shipping in the first place. A friend of my had a GPS device shipped to him from the US. He's not sure if "it" actually arrived at customs. When he went to pick it up there was only an empty box.

Just remember, the most important thing customs officials learn to say in training is, "You have to pay."

 

[Anders]

Steve, thanks for all the useful information.

Problem is I want to buy/bring a couple of 30 inch displays and a laser printer. Not easy to fit in a suitcase.

Many EU countries actually have import tax on certain goods (not electronics, though) but you are usually able to avoid paying it if you are importing for business purposes.

One should think that Argentina could benefit from providing businesses with non-taxed access to work tools such as computers. But I know a lot of stuff doesn't really make sense there.

I guess we will have to carry what we can and pay the premium on a few items in BA.

 

[ghost]

Don't attempt to use logic. You will pay, either in bribes or in import duties or both. It is easier and usually cheaper to simply buy the displays and printer here.
By the time you add in excess baggage costs, duties and bribes you will exceed local costs. [not to mention the hassle factor]

 

[citygirl]

Actually, it still may be cheaper to import it it. Check prices there/here before coming. I know Sleuth brought in a flatscreen tv recently and even after paying import taxes & excess baggage, it was still *much* cheaper than buying it here. You will have to pay import tax on anything new (over the 300 dollar limit) but it still may be more cost-effective to bring it with you, again depending on what exactly it is.