Chile moves forward on tax reform to apply VAT to foreign OTTs

Chilean Deputies Chamber approved almost all the adjustments of the tax reform project, which could become a Law soon. Some of the key points of the reform are focused on applying taxes to foreign OTTs, which must pay  the 19% VAT.  

According to the project, VAT will be charged for ‘the supply or delivery of digital entertainment content, such as videos, music, games and other analogues, through download, streaming or other technology, including texts, magazines, newspapers and books’.  

Some of the platforms affected by the payment of VAT in Chile will be Netflix, Amazon, HBO GO, Fox Play and others. The text also specifies that VAT will be charged for the provision of software services, data storage and advertising services, all while offered abroad.