Renewable energy project developers in Argentina won't have to pay value added tax (VAT) for using renewable energy equipment in their projects. They will be exempted from paying VAT for purchase, manufacture or import of such components.
The country's Federal Administration of Public Income (AFIP) has published a resolution to this effect in the official journal. The resolution is titled AFIP 4101-E, as per local news portal La Nacion. Projects that have secured approval from the Ministry of Energy and Mines are eligible to be considered for this exemption.
This resolution puts into practice what the country's renewable energy law 26,190 specified on March 30, 2016.
Renewable energy investors can claim VAT charged for purchase, manufacture or import of such goods for setting up infrastructure projects. This benefit will only be extended to those who have invested in renewable energy projects in Argentina. The resolution has come into force on August 10, 2017.
Argentina has conducted two auctions so far under its flagship scheme for installation of renewable energy in the country, RenovAr. Under Round 1, 300 MW and under Round 1.5, solar power capacity of 516.2 MW was awarded (see Winners Announced For Argentina Tender).
The government is expected to launch another tender soon.