Chile: Bill Proposes Simplified VAT Regime for Open-Air Markets
the Chilean Ministry of Finance announced that the General Treasury presented a bill to the Chamber of Deputies proposing amendments to Decree Law No. 825 of 1974. The changes aim to establish a simplified tax regime tailored for open-air market activities.
Key elements of the proposed bill include:
- VAT substitute tax: A 1.5% tax on sales conducted through electronic payment methods. This tax, combined with the payment method operator’s service commission, would not exceed 3.5%.
- Voluntary participation: Individuals can opt into the regime either by expressing interest during January each year or by registering as street vendors in their municipality at the time of initiating activities.
- Exclusive activity requirement: Merchants using the simplified regime must exclusively operate in free markets. Otherwise, they will default to the general Sales and Services Tax regime, which includes a 19% VAT rate.
The new provisions are expected to take effect within three months after the law is published. Taxpayers currently involved in free market activities and meeting the eligibility requirements will have until July 31, 2025, to register in the relevant registry.
Source: hacienda.cl
VAT/GST rates 2024 in Americas
| Country | Standard VAT/GST Rate | Reduced Rates |
| Antigua and Barbuda | No VAT tax but standard sales tax is set at 15% | Reduced rate of 14% |
| Argentina | The standard VAT rate is 21%. (enhanced rate of 27% for several metered utilities) | Reduced rate of 10.5% |
| Bahamas | Standard VAT rate of 10% | |
| Barbados | The standard VAT rate is 17.5% (Super rate of 22% mobile voice & text services) | A reduced rate of 22%, 10%, 7,5% |
| Belize | There is no value-added tax as such. Belize instead introduced a General Sales Tax in January 2006, which applies to a wide range of goods and services at a 12.5% rate. | |
| Bolivia | The standard VAT (IVA) rate is 13% under Article 15 of the VAT Law | |
| Brazil | Brazil imposes a state tax equivalent to VAT (ICMS) This rate is imposed by each state and is subject to a limit set by the federal senate. The rates can vary in the states from 17% to 18% (Rio de Janeiro has 20% as an exception). and the highest rate can typically reach 25%. | 7% |
| Canada | The standard federal Goods and Services Tax (GST) rate is 5% | |
| Chile | The standard VAT rate is 19%. | |
| Colombia | The standard VAT (IVA – Impuesto sobre las Ventas) rate is 19% | 5% |
| Costa Rica | The standard VAT rate is 13%, the same rate as the sales tax. | 4%, 2%, 0,5% |
| Ecuador | The standard VAT rate is 15% | 5% |
| El Salvador | The standard VAT (IVA) rate is 13% | |
| Faroe Islands | The standard VAT rate is 25% | |
| Guatemala | The standard VAT rate is 12% | |
| Mexico | The standard VAT rate is 16% | 8% |
| Panama | The standard VAT rate in Panama is 7%. There are supplementary rates of 10% and 15% | |
| Peru | The standard VAT rate is 18% | Effective September 1, 2022 until December 31, 2024, a 8% reduced rate will apply to micro and small suppliers of restaurant, hotel, and tourist accommodation services that receive at least 70% of their income from these supplies. |
| Puerto Rico | The sales and use tax (SUT) rate is 11.5% | 1% |
| Uruguay | The standard VAT rate is 22% | 10% |
| USA | There is no VAT in the USA. U.S. state sales and use tax rates vary between 2.9% and 7.25% | Reduced rates are offered for sales of specific products. |
| Venezuela | The standard VAT rate is 16% | 8% |