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Chile credit card withholding VAT for non-resident B2C digital services Aug 2022

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
Argentina 21% Apr 2018
Bahamas 10% Jan 2015 BSD 100,000
Barbados 17.5% Dec 2019 BBD 200,000
Bolivia 13% Nov 2022 -
Brazil n/a n/a n/a Various proposals
Chile 19% Jun 2020 Nil
Colombia 19% Jan-18 Nil
Costa Rica 13% Oct 2020 Nil Withholding VAT option
Dominican Republic 18% 2023 Nil Currently withholding VAT
Ecuador 12% Sep 2020
El Salvador 13% 2022 - Replace Withholding VAT
Guatemala 12% TBC
Honduras 15% 2022 HNL 250,000
Panama 10% 2022 Withholding VAT
Paraguay 10% Jan-21 Nil Withholding VAT; 4.5% DST
Peru 18% 2022 Nil Withholding VAT
Puerto Rico 10.5% Jan 2020 $100,000; or 200 transactions Marketplaces
Uruguay 22% Jan 2018 Nil VAT and Withholding Tax

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