The Internal Revenue Service of Chile (SII) has issued Circular No. 42 of 11 June 2020, which outlines the Service's interpretation of the practical application modalities of the country's newly introduced VAT on digital services. The tax, locally dubbed the "Netflix tax", became effective from 1 June 2020, and consists of the application of VAT at the standard 19% rate on services supplied by both resident and non-resident digital service providers (see SII announcement including online re…