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

  • Sep 11, 2019 | Richard Asquith

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.

Latest Chilean news

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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