Chile: Digital magazines subject to VAT; other direct and indirect tax developments

The supply of digital information by a foreign provider is subject to VAT, regardless of whether the content is educational or entertainment.

Other direct and indirect tax developments

The Chilean tax authority clarified that the supply of digital information by a foreign provider, through the subscription of electronic magazines that will be used in Chile, is subject to value added tax (VAT), regardless of whether the content is educational or entertainment.

Read a July 2023 report (Spanish and English) [PDF 1.4 MB] prepared by the KPMG member firm in Chile

Other direct and indirect tax-related topics discussed in this report include:

  • Issuance of credit note as means of regularizing VAT situation
  • Application of income tax law to subdivisions of land
  • Instructions regarding tax benefits on the promotion of official sporting events
  • Instructions on the taxation of withdrawals made from voluntary pension savings accounts and mandatory contributions
  • Withholding and payment of VAT by a professional society for services provided by foreign suppliers
  • Exemption from 2% “luxury tax”
  • Classification as a fixed service asset in the context of VAT refund by article 27 bis
  • Special construction company credit in case of changes in contract
  • Monetary correction of stocks acquired abroad
  • Tax cost of shares in a corporate spin-off
  • First registration of vehicles by automotive companies and conservation of their quality as new for VAT purposes


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