Argentina's tax authority introduced General Resolution No. 5879/2026 to consolidate VAT credit refunds for mining exploration into its Comprehensive Recovery System, effective from March 2026 onwards, requiring 12-period seniority and mining authority pre-approval of related goods and services.
Argentina’s tax authority (ARCA) has announced that it has streamlined VAT credit recovery for mining exploration companies through General Resolution No. 5879/2026, published in the Official Gazette on 23 July 2026.
The new procedure consolidates fragmented rules and shifts VAT credit returns into the Comprehensive Recovery System (SIR), superseding the previous framework under General Resolution No. 1761/2004. The change modifies General Resolution No. 5173/2022.
For mining companies, this matters because exploration typically generates VAT costs before the project generates revenue. The revised process lets these companies reclaim accumulated VAT credits earlier, improving cash flow during pre-production phases when sales haven’t yet offset expenses.
Who is eligible and what are the requirements?
Three conditions must be satisfied for the refund to apply.
- First, at least 12 tax periods must have elapsed since the VAT credit was generated.
- Second, the credits must represent a genuine balance in favour for the taxpayer—not a theoretical claim.
- Third, the goods and services must have been pre-approved by the mining authority as directly related to exploration activities.
Operating form and documentation requirements
To streamline the application process, the authorities have introduced a dedicated annex and Form F.8147. While the new procedure standardises submissions, applicants must still provide comprehensive supporting documentation.
Required documentation includes:
- Purchase records: Purchase or import invoices together with the corresponding payment receipts.
- Technical information: A detailed description of the exploration activities, including the geographical location, work schedule, and environmental impact studies.
- Operational details: A breakdown of goods purchased and services contracted that are directly related to prospecting activities.
This regulation will come into force on the day of its publication in the Official Gazette. This regulation is mandatory for recovery applications corresponding to the period from March 2026 onwards.
