The Chilean congress enacted law 21.210, a tax reform bill that will have several implications for VAT compliance. Among the enacted changes, the supply of digital goods and services by foreign suppliers not established in Chile will be subject to VAT. When supplies are made to VAT registered taxpayers, these taxpayers will be responsible for the withholding of the corresponding tax. However, when supplies are made to final consumers located in that country, the digital platforms will be required to collect and submit the corresponding VAT to the tax administration. The law also provides that the tax administration may impose withholding obligations on the local financial entities used by the consumer to pay for the services. These changes will become effective June 1, 2020.