The government of Argentina has entered into a joint agreement with the Ministry of Tourism and AFIP, the country’s tax authority that will see all international tourists receive an automatic and direct repayment of the Value Added Tax (VAT) paid on their accommodation services when using a foreign debit or credit card.
The new travel incentive come into place on 2 January, following an executive order made by President Mauricio Macri. Tourists will be payed at the time of billing at the establishment. Argentina has one of the world’s highest tax rates, at 21%. Argentina has experienced poor tourism numbers and a dip in the Argentinian peso currency, and so the new move is aimed at boasting travel to the country.
Media reports have cited tourists welcoming the move, with them seeing substantial savings while visiting the South American country, Argentina is known for its moderate climate with hot and humid summers. Travellers can enjoy its rich culture and a range of activities that include dancing to its lively Tango, hiking up mountain sides that boast awe-inspiring glaciers and waterfalls. Also on offer, is the food and equally delicious wine to saviour.
For tourists to enjoy the benefit of the new rebate system, they would need to produce proof of living abroad by way of a valid passport or ID card. The accommodation must also be paid for using a non-Argentine credit cad, or alternatively, through an EFT from outside the country.