CHILE-VAT

The Chilean Tax Authority is known as the (SII).

 

The standard VAT rate in Chile is 19% and applies to most goods and services and there is no VAT registration threshold so VAT becomes due once taxable goods or services are supplied.  Some goods and services are exempt from VAT, such as exports, sporting and cultural events, real estate, freight services, used cars and lorries, international passenger transport, and education.  

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E Invoicing

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Chile requires all invoicing to be electronic and E Invoicing is mandatory for all businesses through its central electronic invoicing system.

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Non Resident Digital Service Providers

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Since June 2020, four types of services provided by taxpayers without a domicile or residence in Chile pay Value Added Tax (VAT). Meanwhile, from November 2024, all other taxed services (not expressly exempt) provided by this type of taxpayers must pay VAT.

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This tax obligation is only for foreign taxpayers, without domicile or residence in Chile, who provide taxed services remotely to be used in national territory by non-VAT payers.

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Non resident providers are required to register for VAT via the Digital VAT Portal  (https://www.sii.cl/vat/index.html)

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​​​​Services that require VAT Registration and declaration include:

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• Intermediaries of services provided in Chile, whatever their nature, or of sales made in Chile or abroad, provided that the latter give rise to an import.

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• Those who supply or deliver digital entertainment content, such as videos, music, games or other similar content, through download, streaming or other technology, including for these purposes, texts, magazines, newspapers and books.

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• Those who provide software, storage, platforms or computing infrastructure.

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• Those who carry out advertising, regardless of the support or medium through which it is delivered, materialized or executed.

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• Other Services 

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Reverse Charges

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Applicable to foreign purchases that are taxable where the vendor is not registered in Chile​.  (Purchaser is responsible for accounting for VAT) 

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