Netflix Argentina 35% New Tax

Just got an email advising new Netflix tax in Argentina.

A tax of 35% will apply to your Netflix subscription. You’ll see the tax as a separate charge on your credit or debit card statement.

Anyone else got this? Time to go to Turkey me thinks 😉

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Comments

  •  

    yep also got this

  •  

    for turkey vs argentina with standard sub, works out to be about a $1 difference per month.

    i would move to turkey, but risks getting blocked by mobile verification. so might just stick this out.

    •  

      what do you mean blocked by mobile verification?

  •  

    Yeah I got this too… 35% tax is hefty. It's crazy having to move to Turkey 🦃 during a pandemic. I hope I can find a nice place.

    • +6 votes

      you can always move to Chicken.

    •  

      Wherever you wanna move, stay away from the Bats!! :P

  • +3 votes

    It's not a huge difference, the tax was 21% previously. It's now 35% on 369ARS, so about 500ARS total.

    •  

      There's not been a seperate charge before though. Are you sure it's not a new one on top?

      •  

        https://www.orbitax.com/news/archive.php/Argentina-Introduce...

        Warrants more investigation. It's seems to be levied on currency exchanges rather than a VAT.

        •  

          It's seems to be levied on currency exchanges rather than a VAT

          Yes and no. There are three taxes at play here, 21% VAT (digital services), 30% PAIS (although this is is discounted to 8% if the 21% has already been paid), and the new additional 35% which is applied the same as the PAIS tax. These last 2 taxes are temporary .

          These taxes only apply where there is a foreign currency exchange. The obvious example is when a Netflix subscription is paid in AR Pesos, but is then converted to US dollars. This conversion is done by the financial institution, and is not collected by the service provider, but rather the bank/credit card company processing the transaction. The law seems to apply to Argentine domiciled financial institutions?

          What I don't know is whether this applies to Ozbargainers using an Australian credit card to to buy the subscription? It may not apply, as SgtBatten has said he has not seen a separate charge before? Anyone know? or just wait to see what appears on the CC statement?

          Argentina is currently in another pickle, and is in the midst of a triple whammy. Renegotiating its debt, that it had previously defaulted, separately negotiating a massive IMF loan, and suffering loss of income tax receipts and higher social spending due to COVID.

          •  

            @BOGOF: so how much will it cost now?

            •  

              @Halvar: I don't know. because we don't know if the tax law only applies to Argentinian financial institutions.

              If you lived in Argentina using an Argentine CC, then it would be an additional 35% to what you are paying. But I don't know if this applies to non Argentine financial institutions. This is because the tax is not collected by the provider (e.g. Netflix) but by the bank/CC.

              My suspicion, is that it will not cost any more to Ozbargainers.

              •  

                @BOGOF: if they do how much would it cost? i want to make sure as I might not cancel but if its a lot I will but im not good at understanding maths, sorry.

                •  

                  @Halvar: It will be an additional 35% to what you are paying now, as it is an additional tax, rather than a tax increase. But, I doubt you will be charged this.

                  As an example if you are paying 369 ARS (approx $7 AUD) then it will be 498 ARS ( approx 9 AUD)

                  • +1 vote

                    @BOGOF: Alright thanks, i might keep it and see what happens
                    when I check it says ARS319/month (pre-tax)
                    whats pre tax mean?

              •  

                @BOGOF: It's probable. I haven't been charged PAIS to date, if the collection method is the same then it may not apply.

        •  

          My pricing jumped from $8.27 to $13.25 for the premium package - still lots cheaper than Aus though

          •  

            @Geoff-bargain: It would appear both taxes are being charged now. The 35% compounded on the 21%.

            •  

              @Poppin: Yeah, Argentina are going to find lots of ppl moving to Turkey!

  •  

    If people know anything about Argentina their economy's been a basket case for a long time. Government can't seem to sort themselves out. Feel sorry for the locals having to deal with high inflation and tax hikes that go with it.

    •  

      yank interference - same story throughout SA.

      •  

        Look buddy, we have are ups and downs but South Australia ain't that bad :(

    •  

      Hyperinflation and now COVID causing redundancies / Wage freeze, feel sorry for them. Argentina also has two US exchange rates, official rate and financial rate with the later being about 50% higher, might be causing this tax?

      • +2 votes

        'With U.S. support, Argentina’s junta kidnapped leftists, dissidents, union leaders and anyone who looked remotely like a threat. They tortured detainees, and then threw them alive and conscious out of airplanes into the River Plate, near Buenos Aires, or dumped their bodies in mass graves.

        Pregnant women were killed after giving birth, their babies adopted by the families of childless generals' etc etc etc.

        Argentina has and never will recover from nearly a century of American interference..

  •  

    so a lil over $1aud extra for the top plan?

  •  

    Government saving up for the next rainbow tour.

  •  

    Last time I tried turkey I couldn't get it to work but Argentina had no issues

    Guess we will see next month what this extra tax ends up being for the final Netflix price.

  •  

    Like others have said, it is unlikely this will affect those paying with a credit card issued outside argentina. Such payments are made at the official government rates (currently 55 pesos per AUD). The "dolar blue"/unofficial currency exchange rate is much better and even available on Western Union transfers to argentina (currently 95 pesos per AUD). We actually wire money to family in argentina who pay our netflix account and although the tax has been introduced, the "unofficial" currency rate is going to continue to devalue, largely due to attempted restrictions like this tax, and will largely offset the tax.

  •  

    Not sure how bad this will be….

    Just checked my Argentina billing was abt $10.88 about 6mths ago, last month $8.23

    Looks like currency devaluation so I'm not so worried(yet-till next bill) may not be worth the hassle if it still is in the range.

    •  

      Adding I also just saw their site says 449 pre tax but I've never been billed the extra tax on top it seems - billed 449 only no tax

      So per above comments may not impact us - uncertain

      •  

        I just read a recent news article from Argentina. Local tax experts say that the new tax will apply to anyone currently seeing the tax PAIS on their bill. As usually this is policy on the run from the Argentinian government so it always takes a while for the dust to settle.

  •  

    In Argentina, the following taxes are applicable to Netflix customers:

    21% value added tax (VAT)
    8% transaction tax ("PAIS" tax)
    35% Resolution 4815/2020 tax

    Not sure its added 35%

  •  

    Subscribed to Netflix via Argentina. Billed today. Same Netherlands entity. No new/additional charges.

    •  

      Can you do this with a browser extension VPN like Tunnel Bear?

      Thanks

    •  

      What card did you use? We are getting conflicting information here.

      https://www.ozbargain.com.au/node/566367?page=2#comment-9325...

      • +1 vote

        Bankwest card. From the Netflix FAQ:

        "How can I change the billing currency from US Dollars (USD) to Argentine Pesos (ARS)?

        Netflix charges your monthly subscription in Argentine Pesos (ARS). For technical reasons, card issuers may convert some international charges to US Dollars (USD), which is why the charge on your statement may display in USD.

        If your Netflix charges are in USD and you prefer ARS, you can change your payment method to one of the local methods listed below by signing in to your Account and selecting Manage payment info.

        Cabal
        
        Diners
        
        Naranja
        

        You can find more information about how to pay for Netflix."

        Since the tax only applies to purchasing for foreign currency, it shouldn't apply since I'm paying Netflix in Pesos (therefore purchasing Pesos).

  •  

    Excuse my ignorance but do you do this for cheaper Netflix or more titles? Do you have to always watch it through a VPN? Do you get much content that is different?

    •  

      Works out cheaper. Titles the same and only need VPN for registration not afterwards for watching.

  •  

    -

  • +1 vote

    I got charged yesterday $13 instead of my usual $8.50 :(

    Anyone else get charged more?

    •  

      What card/bank do you use ?

      •  

        28 Degrees

      •  

        Have you paid with your ING card yet? Sounds like it charges the extra.

        •  

          Do you know if its less with ING?

  •  

    I'm trying to figure out which cards aren't charging the extra amount for Argentina…
    Has anyone been paying with Citi debit or UBank? or the many others here: https://www.ozbargain.com.au/wiki/cards_with_no_overseas_tra...
    So far I have:
    charging extra - 28 degs, ING
    charging the old amount - UP, Bankwest

    •  

      Most of the replies that reported the extra charge using ING are new/convert accounts.

      I would like to hear from someone who used ING card on a +3 months old Argentinian account.

      Once I get charged on the 16th, I’ll report back. However, I may cancel and move to Turkey if someone reports before my card gets slugged.

      •  

        Unfort I suspect it won't matter if it's a new or old account. I'll be switching before my next cycle.

  • +2 votes

    Coles Mastercard and wasn't charged any extra on the 25th of Sept.

  • +1 vote

    On 28 Degree card, I was charged $6.56 instead of $3.88 previous month

    • +1 vote

      So it seems if we are using 28 degrees we are paying the tax increase..

  •  

    Of those who have made a payment recently, what does it say on your transaction/statement. e.g. Does it convert ARS to AUD or USD to AUD? and did you get charged the higher amount?

    • +1 vote

      Mine, via Bankwest

      24/09/2020
      NETFLIX.COM Amsterdam
      449.00AR
      $8.25

    • +1 vote

      ING, got stung with a higher charge.
      ARS 736.36 turned to AUD 13.62
      Charged end of September, sad :(

      •  

        Oh, no.

        How long have you had your AR Netflix?

        •  

          Have to think, been quite a while on Argentinian currency, when the original ozb deal came, more than a year definitely. Will have to try a different bank card for next month.

          • +1 vote

            @aaruu: Your best bet is to move to Turkey, and that’s what I intend to do.

            •  

              @Putin: I am having issues with paying with both my Visa and MasterCard on either Netflix Argentina and Turkey. Any work around suggested?

              •  

                @Lukech: You just have to try other cards.

              •  

                @Lukech: They sometimes block/freeze your account for 24hrs if you keep trying on failed cards.

                I didn’t have trouble a year or so to convert my AU account to AR.

                I’m dreading the idea of moving to Turkey now.

  •  

    Has anyone got charged extra with Revolut?

  •  

    Citibank charged almost the tax. However it seems to be more than 35% got charged 5.95 on 199 ars plan which should be 270 ars.

    •  

      same for coles mastercard

      •  

        Odd, I was charged on my Coles MC on the 25th of September and wasn't charged the tax.

        • +1 vote

          Mine was charged on 2nd Oct :( going to change to HSBC debit and see what happens next month

          • +1 vote

            @Icel: I suspect September transactions never attracted the tax.

          •  

            @Icel: what happen?

            •  

              @capslock janitor: Sorry cancelled my AR subscription as what Putin said above should be correct, going to move to Turkey instead

  •  

    I set my vpn to Turkey and it shows on ip leak that I am in Istanbul Turkey but when I goto netflix website it keeps saying netflix Romania..

    Anyone else have this issue

    •  

      I was afraid that would happen…
      Following

      •  

        without knowing the vpn, try Windscribe

    •  

      Same here. Never figured it out so no Netflix. Surviving on my annual prepaid Mubi.

  • +1 vote

    just checked i got charge $13 for top plan, using coles credit card

  •  

    Looks like theres few cards that dont have the xtra charge :(. Time to migrate to Turkey it seems.

    •  

      That was my first analysis, few cards seems to have survived the extra tax on Argentinian accounts but that was debunked.

      Some replies https://www.ozbargain.com.au/node/566367

    • +1 vote

      I can't think of any plausible reason why a credit card would determine if you get charged the tax or not.

  • +1 vote

    CBA mastercard charged $13.46 on 08/10/2020
    description says "Troncos Del T ARG"

    perviously it ws $8.27
    signed up to Netflix Argentina ULTRA HD probably 15-16 months back

  •  

    I got charged $13.25 today on BankWest CC

  •  

    I got charged the extra today with a UBank debit card.

  •  

    I just red on Netflix site. New tax has been introduced in Argentina as of 16/09/2020 so we pay 64% on top of the advertised price from this month.

    In Argentina, the following taxes are applicable to Netflix customers:

    21% value added tax (VAT)

    8% transaction tax ("PAIS" tax)

    35% Resolution 4815/2020 tax

  • +1 vote

    Yep got charged extra. single charge. damn

    •  

      What card/bank ?

      •  

        28 degrees

  •  

    My VPN finally connecting to Turkey netflix website and not Romania.

    My next billing cycle is 27th October so can I cancel now and subscribe to Turkey straight away or I need to wait till after 27th to resubscribe to Turkey netflix?

    • +1 vote

      You'll have to wait until after the 27th.

      •  

        Thanks, hopefully my VPN still works by then.

        • +1 vote

          Hi, I just wonder what vpn provider are u using right now for turkey, I tried express nord and surfshark but doesnt seem to get through

          • +1 vote

            @nguyentran: PIA. It was not working before and suddenly worked today.

            I am thinking if I should just make a new account while it is working