Chile: Government Implementing VAT Withholding Rules for Certain Digital Services Intermediaries
The Chilean Internal Revenue Service announced Resolution No. 46 , setting new VAT withholding procedures for intermediaries involved in transactions to non-resident suppliers for digital services.
The legislation includes:
- Applicable to payment intermediaries such as banks, bank transfer support businesses, savings and loans cooperatives, and non-bank issuers that facilitate transactions to non-resident digital service providers
- When the beneficiaries of digital services are not VAT taxpayers, payment intermediaries must deduct and submit VAT under the simplified tax scheme.
- Mandate payment intermediates to report monthly the VAT received and withheld
- procedures for claiming VAT refunds between August 1 and October 31, 2022.
The new guidelines will take effect on August 1, 2022.
Source: sii.cl
