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As a measure already anticipated for a little over a month, the giant streaming platforms and game services such as PlayStation Plus and Netflix, will begin to apply from this June the Value Added Tax (VAT) in correlation to the tax reform, which seeks the obligation to impose digital services.

You can read: More than 100 thousand signatures to revoke the online payment on PlayStation

This measure will involve a 19% increase in Chile and 16% in Mexico and it will be added to the total. This increase will have implications, not only in subscription services, but also in product sales. This is why many companies should quickly join in notifying, such as Spotify, Steam, Xbox, etc.

Approved in Chile since August 2019

A press release published by the national entity last year, assured that the measure was approved in general by 84 votes in favorr and 60 against.

The regulations that required a minimum of 89 minimum votes (provisions of the Constitutional Organic Law) that refer to procedural matters, precautionary preliminary measures for the tax and customs courts, the recourse, failed to approve (87 votes in favor and 57 against) of cassation in the form, adjustments to the tax claim and duty to keep the judgments published

As reported by the Minister of Finance at the time Felipe Larraín (via Emol), the 10% contemplated in the first instance there would have been cause for discord between the first debates and conversations on this bill, which required raising it to the legal value known as the Value Added Tax (VAT) at Internal Tax Service (SII)which is from 19% for all who offer services to the public.

Sony’s Official Statement

Through an email (available online here), the company assured that Sony PlayStation will begin collecting sales tax in digital products and services.

This, including automatic renewal products sold to customers in Chile, starting June 1, 2020. The sales tax charged on your credit card used for each order is determined by local regulations, and not by PlayStation Network.

The Netflix Statement

On the other hand, the streaming company anticipated from this May 7 the change to its payment policies. This will take effect from now in countries like Mexico, but it will not be until next June 7 or your monthly billing for this month, which will increase.

As of June 7, 2020, the Netflix rate will include a 19% value added tax (VAT) (16% in Mexico). The monthly rate with tax included will be $ 8,320 for the premium plan.

We always add excellent quality series and movies, so you never miss something new to watch on Netflix. Enjoy the best in entertainment.

To finish and to deliver a concrete idea in values, the prices of the plans of Netflix they will be modified as follows:

For Chile: The basic plan will go from $ 4,990 to $ 5,499, the standard from $ 6,990 to $ 8,320 and the premium from $ 8,990 to $ 10,700.

For Mexico: The basic plan will go from $ 129 to $ 139, the standard from $ 169 to $ 196 and the premium from $ 229 to $ 266.

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