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
