Chile Tax Agency Explains Tax Treatment of Virtual Gift Cards

The Chilean Internal Revenue Service Jan. 31 issued an order clarifying the tax treatment of virtual gift cards. Payments made abroad for the purchase of virtual gift cards are subject to Additional Tax (IA), irrespective of the method of payment, if: 1) they allow for the acquisition of services provided abroad and not through a Chilean permanent establishment; and 2) they are not expressly exempt. Payments for gift cards that allow for the acquisition of goods provided abroad are exempt from IA. [Chile, Internal Revenue Service, 01/31/19]

Reference:
View Order No. 406/2018 of 01/31/19, Index page.