Chile has already announced a 19% VAT on non- resident supplied digital services which will become effective on 1st of June, 2020.(1)
In this regards, the Chilean Tax Authority has issued on May 20th a new resolution where it gives further clarifications on the VAT registration process for non resident providers of B2C Digital Services.
According to the resolution, to enroll in the simplified tax regime, and only for tax purposes, non resident taxpayers must fill out the “Tax Regime Registration Form Simplified” that will be available in the “Registration and Records” menu of the VAT Digital Services Portal.
They will also have to choose the type of service to be provided, the VAT filing frequency (monthly or quarterly) and the currency in which declarations and payments will be made.
Last but not least, the deadline for these taxpayers to be VAT registered will be until the 20th of the following month to the first tax period, which is the same date of the filing and payment deadline for each filing period.
As mention before, this process applies to B2C digital supplies from non-resident taxpayers. More information about B2B will be released soon and we will keep you updated.
Global VAT Compliance specializes in helping international business be VAT compliant around the world offering VAT solutions to Digital Companies, so if you can foresee these developments impacting your business, do not hesitate to contact us.
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