Legal Alert – VAT on Services – Modifications to the Sales and Services Tax Law

With the enactment of Lex 21.420, last February 4th,  the Sales and Services Tax Law that affects professional services, in general, have been modified, resulting in the loss of their non-taxable status.

Although VAT taxation of these services will come into effect on January 1st, 2023, its imposition will affect individuals or legal entities that provide services to clients whose activities are not taxed and therefore cannot take advantage of the credit produced. Furthermore, this taxation will increase the cost of services and eventually cause a loss of competitive advantages over other individuals or entities that may be exempted from this taxation due to their legal configuration or personal capacity.

In light of this situation, it´s essential to analyze the nature of the service they provide and verify whether they will be subject to the tax as mentioned above. Our team is at your disposal to assist you in determining the possible impact of this modification on your business and to seek alternatives to mitigate such effects.

If you wish, we can schedule a conference call to clarify any doubts you may have on the subject.

Related attorneys

No data was found

Related areas



Our team of lawyers and tax consultants specializes in cross-border tax matters with a conservative approach, seeking to deliver the most reasonable and effective solution to the client, whether national...
Wealth Planning
The Wealth Management Area is focused on dealing with legal aspects of investment planning and wealth management issues inside and outside the country. It involves tax, inheritance, family, regulatory (investment) and philanthropic aspects, prioritizing a cross-border analysis of the different projects and customer needs. The professional services involved are multidisciplinary, bringing together specialty in various areas of law, such as, corporate, financial, real estate, tax and third sector.


Choose the software you usually use
Or give us a call


Find out about the selection processes through our social networks
Also subscribe to our newsletter


Leave your message and our team will contact you shortly