- Digital services taxation is a significant trend in Latin America.
- Many Latin American countries have adopted unilateral digital taxation measures.
- These measures aim to protect domestic tax bases amid the digital economy’s growth.
- Previously, digital services by nonresident entities were often untaxed.
- Now, most of the region is implementing tax laws for these services.
- B2C transactions are increasingly targeted by tax authorities.
- Mexico, Argentina, Chile, Peru, and Colombia have established indirect tax frameworks.
- Brazil is working on implementing similar rules.
- Mexico requires nonresident platforms to collect a 16 percent VAT.
- Argentina imposes a 21 percent VAT on digital services used economically in the country.
- Chile mandates a 19 percent VAT and requires foreign providers to register and pay taxes.
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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