Foreign service providers that provide digital services to individuals in Chile must register for the simplified value-added tax (VAT) regime and withhold a 19% VAT on the payment for the services.
On June 1, 2020, the new 19% VAT on digital services rendered by foreign digital service providers went into effect in Chile. Foreign digital service providers that provide services to individuals in Chile must register for VAT purposes and report the relevant VAT.
Sources
- EY
- Capacitymedia.com : Regarding B2B digital services provided to other VAT taxpayers “a reverse charge mechanism will apply with the beneficiaries of the service retaining the corresponding tax, granting them the right to VAT fiscal credit for it”.
- WTS
Latest Posts in "Chile"
- Chile Exempts Low-Value Imports from VAT When Purchased via Remote Sellers or Online Platforms
- VAT exemption procedures for low-value remote purchases
- Chile Allows Digital Content Creators to Claim US Tax Credit Under New Ruling
- Procedure for Certifying VAT Exemption on Low-Value Imports Under Article 12(b)(18) of Decree Law 825.
- Chile’s Simplified VAT Regime: Registration Procedures and Recent Tax Developments
