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VAT on Digital Services for Non-Resident Companies operating in LATAM



In the fascinating universe of the digital economy, it is crucial to understand the specifics of Value Added Tax (VAT) on digital services for non-resident companies operating in Latin America and the Caribbean. We invite you to explore its application in the region:


Argentina ๐Ÿ‡ฆ๐Ÿ‡ท - Imposes VAT on certain digital services provided by non-residents. Local financial intermediaries, such as card providers, must collect and remit 21% VAT, as well as the Gross Income Tax (IIBB) from certain jurisdictions and the PAIS tax.


Aruba ๐Ÿ‡ฆ๐Ÿ‡ผ - Requires non-resident providers to register and pay taxes for B2C operations.


Bahamas ๐Ÿ‡ง๐Ÿ‡ธ - Some digital services from non-residents may be subject to VAT under certain conditions. Specific regulations are still awaited.


Barbados ๐Ÿ‡ง๐Ÿ‡ง - Requires non-resident providers to register and collect VAT for both B2C and B2B transactions.


Bolivia ๐Ÿ‡ง๐Ÿ‡ด - Although specific regulations are yet to be established, a bill is being considered to apply VAT to digital services. It proposes registration and payment by non-resident providers, as well as retention mechanisms.


Brazil ๐Ÿ‡ง๐Ÿ‡ท - The recent tax reform allows for the taxation of digital services. The dual VAT regulation (CBS and IBS) is in process.


Chile ๐Ÿ‡จ๐Ÿ‡ฑ - Imposes a 19% VAT on certain digital services provided by non-residents. It has a simplified mechanism for registration, settlement, and payment.


Colombia ๐Ÿ‡จ๐Ÿ‡ด - Requires non-resident providers to register and collect 19% VAT, with the option to use the retention mechanism through local financial intermediaries.


Costa Rica ๐Ÿ‡จ๐Ÿ‡ท - Taxes non-resident providers offering services to local consumers, with two collection mechanisms (13%): registration or retention by local financial institutions.


Ecuador ๐Ÿ‡ช๐Ÿ‡จ - Imposes a 12% VAT on digital services provided by non-residents. Collection is carried out through local financial institutions and payment service providers.


El Salvador ๐Ÿ‡ธ๐Ÿ‡ป - Currently, there are no specific regulations for digital services by non-resident providers.


Guatemala ๐Ÿ‡ฌ๐Ÿ‡น - Currently, there are no specific regulations for digital services by non-resident providers.


Honduras ๐Ÿ‡ญ๐Ÿ‡ณ - Currently, there are no specific regulations for digital services by non-resident providers.


Mexico ๐Ÿ‡ฒ๐Ÿ‡ฝ - Requires non-resident providers to register, settle, and collect 16% VAT. In the case of intermediary platforms, they must withhold taxes applicable to transactions with Mexican suppliers.


Nicaragua ๐Ÿ‡ณ๐Ÿ‡ฎ - Currently, there are no specific regulations for digital services by non-resident providers.


Panama ๐Ÿ‡ต๐Ÿ‡ฆ - Currently, there are no specific regulations for digital services by non-resident providers, but regulation is anticipated in the future.


Paraguay ๐Ÿ‡ต๐Ÿ‡พ - Imposes a 10% VAT on certain digital services from non-residents. Collection is done through local financial intermediaries.


Peru ๐Ÿ‡ต๐Ÿ‡ช - Currently, there are no specific regulations for digital services by non-resident providers, but there is a bill in progress for their regulation.


Dominican Republic ๐Ÿ‡ฉ๐Ÿ‡ด - Currently, there are no specific regulations for digital services by non-resident providers, but there is a bill in progress for their regulation.


Uruguay ๐Ÿ‡บ๐Ÿ‡พ - Taxes non-resident providers of certain digital services with a 12% Income Tax (IRNR) and a 22% VAT. A simplified mechanism for registration, settlement, and payment has been implemented.


In this dynamic environment, with various applicable regulations, Brinta enables companies to simplify and centralize compliance with tax obligations in different countries. This provides businesses with the ability to implement and adapt quickly to changing tax requirements in the region.




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