Chile plans to tax digital platforms

The finance minister, Felipe Larraín, said that the Chilean government plans to incorporate in the tax reform the payment of VAT (Value Added Tax) on commercial transactions of digital platforms such as Spotify, Netflix and Amazon, among others.
“We have decided to include the taxation of the digital economy in our tax modernization,” said the minister, according to La Tercera. In this way, the government wants to ensure that companies compete on equal terms.
According to Larraín, “it is not fair that, offering the same service, some companies pay taxes and others don’t. In principle and when applicable, all must pay income tax, VAT and import duty, unless they have a free trade agreement with Chile.” The project with modifications to the tax reform will be presented before September this year.