Tag Archives: VAT

Ecuadorian Government would collect taxes from OTTs

From 2020, Ecuadorian Government analyzes to tax digital platforms, with the aim of raising its tax collection by 1.5% of the Gross Domestic Product (GDP). The proposal, which came up after an agreement with the International Monetary Fund (IMF), will be sent to the National Assembly in order to be discussed and approved in the [...]

Costa Rica puts off VAT collection to foreign OTTs

Nogui Acosta, Costa Rican Finance Vice Minister, informed that the Value Added Tax (VAT) will not be charged to foreign OTTs that provide their services in the country from July 1st. Acosta anticipated that digital platforms will be taxed with VAT (valued at 13%) in the future, but it is still not defined which  OTTs [...]

Argentina aims to encourage audiovisual content production

The Cinema and Visual Arts National Institutes (INCAA) President, Ralph Haiek, together with Argentines Nation Production and Labor Ministry, Dante Sica, and representatives from the Argentine TV, Audiovisual, Interactive and Data Services (SATSAID) and the Argentine Actors Association, ran an agreement to promote audiovisual production in different international content distribution platforms. According to the information [...]

Mexico could also apply a tax to foreign OTTs

United Nations Economic Commission for Latin America and the Caribbean (Cepal) considered that Mexico could obtain revenues valued in USD 178.8 million per year if it charges VAT to digital platforms and charges 3% for intermediation services from platforms like Netflix and others. The entity established in its report Fiscal Panorama of Latin America and [...]

Chile demands VAT’s payment to foreign OTTs

Chilean Finance Minister, Felipe Larrain, announced that the initial proposal to apply a special tax for OTTs based in countries different from Chile will be replaced by one that contemplates the VATs payment, whose current rate is 19%. The concept is that the same VAT, to which all the regimes without distinction are subject, will [...]

Chilean Government aims to increase taxes to OTTs and equaling them with VAT

Chilean Finance Minister, Felipe Larraín, proposed to apply an up to 19%  increasement to OTTs taxes, in the context of the tax modernization project promoted by the Government. The initiative contemplated a 10% raise at first, but the Government suggests equaling the figure with VATs value. Netflix competes with DirecTV, VTR, with all the other [...]

Colombia will retain VAT to foreign OTTs on credit cards

Colombian National Directorate of Taxes and Customs (DIAN) warned that it will be able to order different means of payment in the country – including credit, debit and prepaid cards and cash collectors – the 19% VAT retention to international OTTs , which will apply from next July 1st. DIAN, surely, will make a cut [...]

Argentine provinces charge Netflix tax

Many Argentine provinces charge an aliquot on online subscription platforms like Netflix, Spotify, Airbnb and others. It is added to 21% Value Added Tax (VAT) imposed on digital content from international platforms sales, which Government started charging in the first half 2018. Salta province announced it will apply a 3.6% extra in OTT prices, which [...]

Colombia starts taxing digital platforms

From July 1, the Value Added Tax (19%) started to apply to foreign digital platforms that provide services in Colombia, including Netflix and Spotify. The measure had been included in the 2016 tax reform. The National Directorate of Taxes and Customs (Dian) stated that service providers can already register as responsible for VAT in Colombia [...]

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 [...]