VATupdate

Share this post on

Chile’s Congress to discuss tax reform proposal

The bill would modify the value-added tax (VAT) rules as follows:

  • Extending the online simplified VAT filing platform for digital services providers to everyforeign seller or service provider with operations levied with VAT in Chile that render services remotely
  • Enhancing the territoriality legal presumption for services (such as IP address, address for billing purposes, etc.) to capture more cases of services rendered remotely, instead of only digital services taxed with VAT
  • Establishing a new special anti-avoidance rule that would allow the Chilean tax authority to recharacterize share deals (where at least 20% of the company is sold) as asset deals to apply VAT when the transferred entity derives more than 50% of its value from fixed assets
  • Capping export VAT refunds at 19% of the value of the exported goods or services

Source EY

 

Sponsors:

VAT news
VAT news

Advertisements:

  • VATupdate.com
  • AXWAY - VATupdate Banner