VAT on Digital Services and B2C Transactions: Experiences in the Latin American and Caribbean Region

Abstract

Globalization and new technologies have encouraged new markets to emerge along with new ways of trading goods and services with no physical presence required. Based on the OECD recommendations, countries around the world have started to adapt their VAT legislations to tax cross-border digital transactions supplied by non-residents. Countries in the Latin American and Caribbean region have started to amend their VAT systems to follow this international trend. In this article, the authors provide a general outline of the recent developments with regard to VAT applicable in B2C transactions in the region, summarizing the countries’ experiences and providing their own reflections.