Wednesday, May 12, 2021

Collection of VAT on digital products generalized in the region

Six countries modified their legislation last year to add platform services to taxed activities paid by the consumer. Meanwhile, the income tax remains subject to an unresolved global debate where the OECD leads the way.

In recent years, Latin American governments have joined the trend of applying taxes to digital platforms. The trend was stressed in 2020 due to the government need to increase tax revenues to face the pandemic. Large and medium-sized Latin American economies have already established these taxes with the striking exception of Brazil, although that status would soon change. Nor does Panama apply taxes on platform operations.

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