Monotributo and invoicing for food businesses

If you're thinking about opening a food business, we recommend reading this article carefully. We'll tell you all about the monotributo (Argentina's simplified tax regime) and invoicing so you can do everything the right way.

Although you can register as a monotributista yourself, ideally you should get professional advice from the start, since there are things you don't know when you first enter this world. Especially when you run a business, there are extra factors to consider when you have to go through a recategorization.

Why you need to be a monotributista

To issue invoices, you'll need to be registered as a monotributista. That gives you stability and the chance to access different kinds of financing that can help you keep improving your store (whether physical or online). Being a monotributista is also key to expanding your business beyond your own city. With an online store you can break down barriers and sell in any city you want.

If you're starting a business, we recommend the monotributo because it's the most affordable way to invoice. The monthly payment covers all your taxes. Super convenient.

You can start in a low category and move up over time, based on your annual revenue. An accountant can handle this for you at a very reasonable price.
Don't lose sales because you can't issue an invoice!
With advice from an accounting professional, you can have everything ready in a single day and
start invoicing. Keep in mind that you'll always need someone who knows accounting to run your business. Every 6 months, AFIP (Argentina's tax authority) requires a recategorization, which your accountant should handle.

Moving from monotributista to responsable inscripto (regular VAT-registered taxpayer) is also key, and what matters is getting advice at every step of the business. What professionals such as Matías Colonnese recommend is to anticipate situations as they arise.

In the farm sector (fruit and vegetables), entrepreneurs and producers under the monotributo pay lower gross income tax rates.

Companies: businesses with several partners

If there are several partners in the business, you can consult an accountant to set up a company and follow all the steps the law requires to avoid problems down the road.

Companies protect the personal assets of the people involved. By setting up a company, if any problem arises, liability is limited to the company's own assets. The personal assets of the company's members are not affected.

Don't miss this webinar on monotributo, VAT and accounting basics for family farming producers.

Tips on monotributo and invoicing

• Although the monotributo is simple, there are things entrepreneurs and producers don't take into account at first. For example, when setting product prices, you need to factor in invoicing and all your monthly expenses.
• We recommend creating a Google Sheets or Excel template where you can update your expenses and income month by month. Keep this in mind from the very start of your online business, since ideally you should begin organized and with clear numbers.
• To sell outside your neighborhood or province, you need a formal legal status and must be registered as a monotributista. Transporting products requires certain registrations that can't be processed without invoicing. In addition, to sell in more provinces you need to register under the Convenio Multilateral (the interprovincial tax agreement, managed through AFIP).
• Being a monotributista gives you a good chance of accessing loans and benefits. Find out what you can apply for or do based on your current category.
• Avoid an excessive tax burden with the help of a professional accountant.

We recommend downloading this ebook to start your business from home!

Monotributo and invoicing: a summary

It's worth noting that you don't need to issue invoices to have an online store on Agrojusto, but it does become necessary once your business starts to grow. The best approach is the one Matías describes: get advice from an accounting professional from the start and begin by registering under the monotributo.

Everything related to monotributo and invoicing needs to be taken into account so you start your business on the right foot and don't run into any problems down the road.