Starting next June 1st, Netflix will increase its monthly subscription value in Chile and Mexico, where their Government established that, from that date, the platform must begin to pay VAT. From next month on, the tax payment l be part of the monthly value paid by each subscriber.
The Chilean Government approved this year the initiative to charge foreign digital platforms with a 19% VAT, starting on June 1st. In addition to Netflix, the measure affects other OTTs such as HBO GO, Amazon Prime Video and Apple TV. Consequently, the platform announced that the cost will be part of its clients monthly subscriptions.
‘As reported at the beginning of the year, the Chilean Government is adding VAT to digital services such as Netflix since June 1st’, they commented from the platform in a statement shared with BioBioChile. ‘For this reason, we began to notify our members that prices will be adjusted in this way. Members will see this additional tax as a separate item on their bill from June 1st’, he added.
Thus, the Basic plan will cost CH $ 5,940, that is, USD 7 (previously CH $ 4,990, or USD 6), while the Premium plan, which allows to watch content on up to four screens at the same time and Ultra HD quality will now cost CH $ 10,700 or USD 13 (previously CH $ 8,990 or USD 11). Meanwhile, the intermediate option (2 screens and HD) will cost CH $ 8,320, that is, USD 10 (previously CH $ 6,990, or USD 9).
In Mexico, the Government also approved the 16% VAT implementation to digital platforms. ‘As reported in late 2019, the Mexican Government is adding VAT on digital services such as Netflix as of June 1st’, a Netflix source told the Milenio newspaper. As a consequence, we have begun to notify our users that there will be an adjustment in our prices, at the same time that we have worked to minimize the impact on our Basic plan. Members will see this tax as a separate item on their bill starting June 1st’, the person added.
Thus, the Basic plan will go from MX$ 129 (USD 5) to MX $ 139 (USD 6); the Standard plan will go from MX$ 169 (USD 7) to MX$ 196 (USD 8); and the Premium plan will go from MX $ 229 (USD 9) to MX $ 266 (USD 11).