resources-post-top-bg VAT on foreign digital services

VAT on foreign digital services

VAT News Updates

8th May 2020: Chile and Ukraine look to VAT on foreign-supplied digital services to raise revenue for their respective countries.

Chile

Chile is extending their VAT rules to include foreign businesses that provide digital services to consumers in Chile.

Beginning 1 June 2020, Chile will apply a 19% VAT on foreign-supplied digital services. Foreign digital service companies will now have VAT registration and collection obligations for their sales to customers based in Chile.

Some of the affected digital service will include, but not limited to:

  • Advertising;
  • Supply or delivery of digital entertainment content – videos, games, music, streaming and downloads of books, magazines and newspapers;
  • Storage, software, platforms

It has been estimated that the VAT imposed on foreign-supplied digital services could raise $40 million USD annually for the Chilean government.

Ukraine

The Ukraine is also looking to expand its VAT reach for non-resident providers of digital services, announcing plans to begin collecting VAT from these types of providers in January 2021. This includes services such as:

  • Providing advertising services and mobile applications;
  • Streaming or downloads of music and videos;
  • Online gaming;
  • The supply of images/texts, including e-books, magazines and photographs;
  • Dating websites;
  • Web services

 

 

See more Taxback International Articles

2021 EU VAT for e-commerce

6th April 2020: As of 1 January 2021, new VAT rules for e-commerce will apply and will have a big impact on all businesses involved.

VAT on digital services update.

10th January 2020: Ecuador & Paraguay have imposed VAT on non-resident sales of digital & electronic services to consumers in their countries.

Global VAT updates relating to Covid-19

Updated 7th September 2020: Governments globally continue to alter VAT rates to support their businesses and economies.