The formula
With 21% VAT as the only tax considered: ARS 12,100 ÷ 1.21 = ARS 10,000. With 10.5% VAT: ARS 11,050 ÷ 1.105 = ARS 10,000. Other taxes require their base and treatment to be validated.
The most common mistake
Multiplying the final price by 0.79 (subtracting 21%) gives $9,559 in the example above: a net price lower than the real one. VAT is calculated on the net, which is why the correct operation is to divide.
How to show it in your store
- On Shopify and Tiendanube, with a block in the product template that calculates the value from the price.
- On custom websites, with a function that uses each product's tax rate.
- Always close to the final price and with the full disclaimer.
What the rules say
Law 27,743 (2024) created the Consumer Tax Transparency Regime. Since the application details depend on the business and the type of invoice, confirm it with your accountant.
EF
Emiliano Fraga, Founder of Byte
Designs and builds websites, stores and systems with artificial intelligence agents for brands in Argentina and Latin America.
Designs and builds websites, stores and systems with artificial intelligence agents for brands in Argentina and Latin America.
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Tell us about your product and current setup and we'll send a written proposal with phases, scope and every cost.