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Paraguay calls for tax on OTT platforms 18 July 2018

OTT gets taxable in Paraguay

South American country Paraguay to charge VAT on OTT platforms such as Netflix, Amazon Prime, Spotify etc. According to the Vice Minister for taxation, Liz Del Padre Maciel, half of the proceeds from the tax, which is set at 10% will be paid into an audiovisual fund to support the regional content. The tax will be collected by local banks and will be held up to the companies affected to decide whether to pass the cost to end users. OTT services are yet to respond to the development.

Paraguay is the latest among a number of Latin American countries to introduce VAT on OTT services. Earlier this year Colombia was in news for making SVOD platforms taxable in the country.

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