When foreign provider is not VAT registered, credit or debit card issuers must withhold VAT
From 1 August 2022, Chilian issuers of credit or debit cards must monitor payments for B2C digital services to non-resident providers. Where the provider is not VAT registered in Chile, they must withhold 12% VAT 19%
VAT on non-resident electronic services since 2020
Chile VAT on digital services was imposed in July 2022. All providers are obliged to register for VAT the tax office, SII Commissioner, via a simplified process. There is no VAT registration threshold. The Chilian Internal Revenue Service will issue a list of non-compliance provider once a year
Check our global VAT and GST on digital services tracker to see which other countries have introduced indirect taxes on electronic services to consumers.
The Internal Revenue Service also provided rules on how service providers can be removed from the non-compliant entities list (i.e. mainly, through their registration and payment of any VAT obligations triggered during their operation in Chile). The Internal Revenue Service provided these rules through Resolution 46, published on 13 May 2022.
Central and South America VAT on digital services
|Comments (click for details)||Rate||Date||Threshold||Comments|
|Bahamas||10%||Jan 2015||BSD 100,000|
|Barbados||17.5%||Dec 2019||BBD 200,000|
|Costa Rica||13%||Oct 2020||Nil||Withholding VAT option|
|Dominican Republic||18%||2023||Nil||Currently withholding VAT|
|El Salvador||13%||2022||-||Replace Withholding VAT|
|Paraguay||10%||Jan-21||Nil||Withholding VAT; 4.5% DST|
|Puerto Rico||10.5%||Jan 2020||$100,000; or 200 transactions||Marketplaces|
|Uruguay||22%||Jan 2018||Nil||VAT and Withholding Tax|