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Grossing-up to be included in VAT base
The Federal Supreme Court recently decided that income tax corresponding to foreign beneficiaries and assumed by an Argentine party as a result of grossing-up provisions shall be included in the VAT base. Taxand Argentina provides an update on this development.
The Court held that the referred inclusion of the income tax assumed by the Argentine party is applicable even if it is not reflected in the invoices documenting the payment obligation between the contracting parties, since the assumed income tax forms part of the net price of the transaction to which the VAT law refers.
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