He Government of Chile announced this Thursday that it will present in Parliament in the coming days a bill to refund VAT to foreign tourists for purchases made in the country and that they are for use or consumption outside, a measure that seeks to boost the ailing tourism sector.
“The project will enter the National Congress next week and will do so through the Chamber of Deputies, since it has tax measures,” said the Minister of Finance, Mario Marcel, in a press conference.
The legislative initiative emulates the VAT refund models for foreign tourists that exist in the European Union.
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The legislative initiative emulates the VAT refund models for foreign tourists that exist in the European Union and in Latin American countries such as Uruguay, but in this case the business will not be required to certify before the tax authority and tourists will only have to present the receipt of the good to be declared.
With this measure, more than 60% on average of expenses made by foreign tourists will be exempt from VAT because the other significant expenses, passenger transportation and lodging services, are already there, according to the Ministry of Finance.
The project also contemplates the refund of VAT for foreign audiovisual productions made in Chile, an incentive similar to those carried out in countries like New Zealand to stimulate the audiovisual industry.
Chile, one of the countries that imposed the toughest and longest restrictions during the pandemic, received about 3.7 million foreign tourists in 2023, 17.4% less compared to 2019, before covid-19.
ViƱa del Mar, tourist city in Chile.
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Despite the decrease in foreign tourist arrivals, The total foreign exchange generated by tourism in 2023 exceeded 13 billion dollars, higher than what was recorded before the pandemic.
The pandemic changed the proportion between national and international tourism. We have 10% more national tourism
“The pandemic changed the proportion between national and international tourism. We have 10% more national tourism, there are important behavioral changes in our compatriots, who decide to travel around the country on long weekends,” said the Undersecretary of Tourism, Vero Pardo.
The legislative initiative also includes double resources for international tourism promotion to 20 million dollars annually, an amount that is “more than Argentina”, the great South American tourist beacon, pointed out Pardo.
To finance this increase, a 1.25% rate will be created on the price of accommodation services contracted by foreign tourists, which also includes digital platforms such as Airbnb.
EFE
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