Chile bill VAT on non-resident e-services June 2020

The Chilean Congress is to consider a bill to levy VAT on foreign electronic and digital services sold to consumers. 

The current standard VAT rate in Chile is 19%. The bill envisages a 10% rate on non-residents selling to Chilean consumers. Where a payment provider, such as a credit card company, is settleing the payment, there will be a responsibility to withhold the VAT. Where the services are provided to Chilean businesses, there should be a 15% withholding tax on the payment to the provider.

Mexico and Indonesia are planning similar extensions of their VAT nets to electronic services, which follows the global trend.