In consequence of the last tax reform recently published in Chile, starting June 1, 2020, digital companies will begin to pay the value added tax (VAT) for the services provided through their platforms, which currently corresponds to 19% of the value of the service.
In particular, the new regulation establishes that this tax will affect: “The supply or delivery of digital entertainment content, such as videos, music, games or other analogues, through downloads, streaming or other technology, including for these effects, texts, magazines, newspapers and books. “
This will have an impact on popular entertainment platforms such as Netflix, Amazon Prime, Playstation Network, Amazon Prime and Hbo Go, motivating some of them to begin informing their users of the increase in their prices.
As a result, for example Netflix informed its customers, via email, that the cost of their plans would be increased by 19%. Therefore the Basic Plan that previously had a cost of $ 4,990.- will now cost $ 5,940.- and the Premium that previously cost $ 8,990.- will now have a value of $ 10,700.-
