translated from Spanish: VAT on digital services: SII auditers warned double taxation for consumers and the government ‘understands people’s sentiment’

One year after the start of its processing, on Thursday in the Chamber of Deputies the tax reform was approved, a fact that was not alien to criticism.
One of the points of the tax modernization was criticized: the VAT-related one for digital services, such as Spotify or Netflix. The House approved it with 123 votes in favour, 20 against and 4 abstentions. Criticism suggests that users could pay double tax.
In this regard, internal revenue service oversights warned that double taxation could be generated for consumers. For example, in food and home delivery applications, you would be charged for the product and additionally for delivery.
As Juan Apablaza, leader of the SII’s audit agents, told Bío Bío radio: “There is no absolute clarity”.
“You’re going to pay for food 19% and you’ll also pay for the technology app another 19%. We’re doubling people down,” he added.
Match the court
From the Government, they understood the unease of the people, as stated by the Minister General of the Presidency, Gonzalo Blumel.
“I understand the feeling of a large part of the public because people actually prefer less VAT than more VAT, but it must also be explained clearly that in a market economy things work when the court is even,” he explained.
“Today what we have is that digital platforms do not pay VAT and all other non-digital services do pay VAT, today we have for example digital platforms in terms of hosting, which do not pay VAT,” he added.
This hurts the “small SMEs and small hotel entrepreneurs of the tourist sector, so what we want is to match the court because when there is even court and rules couple the economy works better”.
 

Original source in Spanish