- Chile introduces a new VAT withholding regime for non-resident online sellers and digital platforms, effective June 1, 2026.
- Local payment service providers must act as VAT withholding agents for payments to non-resident sellers not registered under the simplified tax regime.
- Withholding agents are required to charge, collect, declare, and remit VAT for each relevant transaction and file monthly VAT returns.
- Non-resident sellers can opt to register and account for VAT themselves, removing the withholding obligation from payment providers.
- Designated agents must submit a mandatory information report by February 2027, and the regime applies only to sellers listed as “Digital VAT Taxpayers Subject to Change of Taxpayer.”
Source: 1stopvat.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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