The program “Buy Without VAT” comes into effect this Monday, September 18. The refund has a monthly limit of $18,800 for the purchase of products from the Basic Food Basket (CBA) with a debit card. The beneficiaries of the measure must spend more than $108,000 in the month to make the most of the help. The VAT refund is valid until December 31 of this year.
In dialogue with Página|12, the head of the AFIP, Carlos Castagneto, announced that during the first two weeks of the program’s validity, more products will be included than those of the Basic Food Basket (as long as it concerns food, beverages, hygiene and cleaning), until the traceability of purchases and the codes of the products that are included can be guaranteed.
On the other hand, Castagneto clarified that in the case of employees in a dependency relationship, the VAT refund is for those who have salaries of up to $708 thousand net.
9 keys to the “Buy without VAT” program
Point by point, the details of the plan that will reach salaried workers, retirees, monotributistas, beneficiaries of the Universal Child Allowance and workers in private homes.
- The benefit can be accessed with any of the debit cards of all banks.
- At the moment, if you pay with money in a digital wallet account, such as MercadoPago or MODO, you will not receive a refund. However, the head of the Federal Public Revenue Administration (AFIP), Carlos Castagneto, assured that this week talks will begin to add these companies to the program.
This is not a minor aspect, since thousands of transactions are made every day through virtual wallets with money not associated with any debit card. According to Castagneto, Mercado Pago and MODO must adapt their systems to guarantee VAT refunds.
- There are products, such as milk, that are not taxed with the Value Added Tax or that have different rates. However, Castagneto confirmed that in any case “refunds will be given” in them as well.
- There is no need to do any paperwork. The 21% refund It’s automatic.
- The refund deposited up to 48 hours after purchaseautomatically and in the bank account of the associated debit card. In cases where purchases are made between 7 a.m. and 5 p.m., returns will be made within 24 hours. If done after 5 p.m., the delay will be 48 hours.
- The benefit is not exclusive, it is accumulated to bank promotions. It is also cumulative with other types of benefits, such as those from the DNI Account of Banco Provincia (Bapro) of the Province of Buenos Aires. In the case of the DNI Account, the official explained, it is both for purchases made from the wallet and for those who have the physical Bapro card.
- The program is per beneficiary, not per family group.
- To fully take advantage of the benefit and obtain the maximum allowable refund of $18,800, the person must spend $108,324 in total that month.
- To know how much the refund is, the calculation is: the amount spent multiplied by 21, and that divided by 121. For example: ($10,000 x 21) / 121 = $1,735.
This is not a minor aspect, since thousands of transactions are made every day through virtual wallets with money not associated with any debit card. According to Castagneto, Mercado Pago and MODO must adapt their systems to guarantee VAT refunds.
The products on which the 21% VAT will be refunded will be those of the Basic Food Basket, such as foods, meats, fruits, vegetables, dairy products, eggs, non-alcoholic beverages and some with alcohol, coffee, herbs, personal hygiene and cleaning products, among others.
