Chile VAT foreign B2C digital services

Chile has dropped plans to impose a 10% turnover tax on digital services provided by the likes of Facebook, Airbnb, Google and Spotify to consumers. This was to be levied on B2C non-resident providers of: downloadable or streaming media; advertising services; intermediary services; and cloud software. Taxes due were to be withheld by registered credit card companies.

The Minister of Finance last week has instead proposed regard such foreign supplies as subject to 19% VAT. This would imply obliging non-resident providers to register and collect VAT themselves without the use of payment intermediaries.