Chilean VAT number contains 7 or 8 digits, dash, and one check number (e.g., 01.234.567-8).
The standard VAT rate in Chile is 19%. Some goods and services are exempt from Chilean VAT, such as exportations, tickets for sports and cultural events, education, and international transport. There are no reduced rates in accordance with indirect tax legislation.
All businesses with Chilean VAT number must submit periodic VAT reports.
For all companies that operate in Chile, VAT returns must be submitted monthly.
The penalties vary depending on the type of non-compliance or breach of the tax legislation.
Penalties that may be triggered in case of non-compliance or breach of the tax legislations are as follows:
Invoices issued in Chile must contain at least the following:
As one of the smallest countries in LATAM, but at the same time, the first country in the world, Chile introduced mandatory electronic invoicing. As of 2018, e-invoicing is mandatory for all Chilean entities and economic operators, including rural taxpayers and small businesses.
Governmental body responsible for e-invoicing in Chile:
Documento Tributario Electrónico – DTE, is a structured and electronically signed data document in XML format that is being sent to the Chilean tax authority SII. In other words, DTE represents the e-invoice. To be able to issue DTE, Chilean businesses must first obtain a Folio Authorization Code (Código de Asignación de Folios – CAF) from SII. Once approved, SII will provide the business entity with a CAF digital signature required to issue DTE. The CAF number provided by SII is valid for 1 year, which means that businesses must obtain the CAF number once a year.
What does the DTE issuance process look like?
In cases where products are shipped without an electronic invoice, sellers may be subject to fines of between $77 and $1,500 per transaction. On the other hand, falsifying a DTE is a criminal offense, which triggers penalties of between 50% and 300% of the tax due and possible imprisonment.
Date updated [May 12, 2021]
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