Through Decree 789/2026 published on 5 October 2026, the Executive Branch has established a monthly cap on VAT credit refunds for large taxpayers classified under the “Special Monitoring Regime” (Régimen de Seguimiento Especial – RSE). The cap is set at ARS 2.5 billion per month per taxpayer, applicable to refund requests filed after 1 November 2026. The measure targets approximately 320 major exporters and industrial firms that consistently generate substantial VAT credit balances due to zero-rated exports and high domestic input VAT. The Ministry of Economy justified the cap as a fiscal management tool to control cash outflows amid tight budget constraints, estimating savings of ARS 1.2 trillion in 2027. Affected taxpayers may request exemptions for documented investment projects exceeding ARS 50 billion.
Key Takeaways
- Refund Deferral Mechanism: VAT credits exceeding the monthly cap are not lost but carried forward as a refundable balance for subsequent months. AFIP will prioritize refunds for SMEs and non-RSE taxpayers, potentially accelerating their cash cycles.
- Investment Exemption Criteria: Companies with approved investment projects (under Law 27.742 – Investment Promotion Regime) can apply for a temporary waiver of the cap for up to 18 months. The application requires a technical-economic feasibility report certified by an independent auditor and AFIP pre-approval.
- Sectoral Impact and Legal Challenges: The automotive, agribusiness, and petrochemical sectors are most affected. Legal experts anticipate constitutional challenges arguing the cap violates the principle of non-confiscatoriness and the right to timely refund of tax credits. The Supreme Court precedent in “Cía. General de Combustibles” (2021) supports taxpayer claims for unrestricted VAT credit refunds.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement