The Chilean Internal Revenue Service (SII) has announced the creation of a proposal to allow sports betting operators to register and pay taxes under a new simplified tax framework.
According to the SII, some of the most well-known international betting brands, as well as crypto currency companies, are now under investigation.
“Our service has developed coordinated work with banks and other payment card issuing entities, in order to obtain information to determine if the registered platforms are declaring and paying the tax; or, well, identify the platforms that do not declare or pay digital VAT, and must do so”, Diario Financiero quoted the director of the SII, Hernán Frigolett as saying.
While redoubling efforts to contact unregistered businesses, the official claimed that they had met with banks and non-banking institutions that issue payment cards “to coordinate the operational parts of this move, which begins on August 1st.”
At the same time, he stated that registered companies that do not notify and pay the VAT equivalent to the digital services they supply are “in a non-compliance scenario.”
“The SII will continue to permanently monitor that any foreign business or platform, without domicile or residence in Chile, that provides digital services taxed with VAT in Chile, complies with the payment of this tax,” Frigolett said.
Earlier this year, the government stated that it will begin to regulate internet sports betting. In March, Undersecretary of Finance Alejandro Weber stated that the newly regulated industry would earn up to US$55 million in tax revenue for the government.
According to the Gambling Board (SJC), there are already over 900 offshore betting sites that offer their services locally, with a total transaction of US$ 150 million. Lockdown has considerably expanded online betting in Chile, and younger players are now betting in greater numbers online.