- The Chilean Ministry of Finance announced a new bill aimed at simplifying VAT for open-air markets
- The bill proposes a 1.5% VAT substitute tax on sales made through electronic payments, capped at a total of 3.5% including service fees
- Participation in this simplified tax regime is voluntary, with registration options available in January or upon starting as a street vendor
- Merchants must exclusively sell in open-air markets to qualify for this regime, otherwise, they will be subject to the standard 19% VAT rate
- The proposed changes are expected to be implemented three months after the law is published
- Current market vendors have until July 31, 2025, to register under the new system if they meet the eligibility criteria
Source: globalvatcompliance.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.
