Type: Legislation
Effective 1 December 2024, Chile’s tax authority (SII) will enforce new VAT compliance requirements for foreign digital service providers, including a simplified registration platform with monthly or quarterly filings. Since July 2020, a 19% VAT has applied to B2C digital services like streaming, e-books, and SaaS, while B2B transactions use the reverse charge mechanism. From January 2027, platform operators will face new VAT obligations under deemed supplier rules, with updated place-of-supply criteria based on factors like payment address or IP. Providers must register for VAT regardless of turnover and determine customer residency to assess tax applicability. These changes aim to enhance compliance and streamline tax collection from non-resident providers.
Effective date: 1 December 2024
