Good morning everyone.  This post only affects people who have plans to visit Argentina, but there was a new rule/policy passed recently that if you use a foreign credit card (any credit card issued outside Argentina), you do not pay the hotel VAT (value added tax) for your stay.  I’m not sure when the new rule/policy went into effect, but when I was staying at the Sheraton Libertador Hotel in Buenos Aires, Argentina 2 weeks ago, the front desk agent mentioned that if you pay with a credit card, you do not have to pay the hotel tax.  This caught us off guard, but we didn’t ask any questions.

According to the Latin America Tourism Association:

Tourists will receive a refund for the VAT, which today stands at 21%, when they pay for their accommodation.  To receive the refund, they must pay with a foreign credit or debit card, provide their passport number and confirm their address. Tour operators and travel agents who take bookings must provide this information on their behalf.

“We anticipate that the move to reimburse foreign tourists for the VAT on their hotel stays will boost tourism to the destination, increase the number of foreign tourists in the country and reinforce Argentina’s status as one of the must-see destinations in Latin America.”

“The new law not only emphasises the importance of tourism to the Argentine economy but will also improve the competitiveness of the destination’s tourism industry, which will inevitably have a long term positive effect on tourism numbers.”

“This new law, combined with the development of tourism infrastructure and the launch of new direct flights from Europe to the region, reflect the efforts being made by governments to open up Latin America to international tourism and to better promote the destination.”

There you have it, visit Argentina and avoid the 21% hotel VAT when you pay with a credit card.  If you have any questions, please leave a comment below.  Have a great day everyone!