COUNTRY GUIDES / Chile

Chile tax guide for businesses

VAT Rate
19%
E-Invoicing
Mandatory
Real-Time Reporting
Mandatory
Digital Service Tax
No
Products supported
Lookup
Tax ID validation
Tax
Tax amount calculation
Invoicing
Compliant invoice generator
Reporting
Real-time transaction reporting

Compliance And Rates

VAT Number Format In Chile

Chilean VAT number contains 7 or 8 digits, dash, and one check number (e.g., 01.234.567-8).

VAT Rates In Chile

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.

  • 19% (Standard) – Applies to all taxable supplies, with certain exceptions
  • 0% (Zero) – exportations of goods and services, admissions for sporting and cultural events, education, used cars, and international transport

VAT Payments And Returns In Chile

All businesses with Chilean VAT number must submit periodic VAT reports.

VAT Returns Frequency In Chile

For all companies that operate in Chile, VAT returns must be submitted monthly.

Penalties in case of late filings or misdeclarations

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:

  • In cases where products are shipped without an electronic invoice, sellers may be subject to fines of between $77 and $1,500 per transaction.
  • Falsifying a DTE is a criminal offense, which triggers fines of between 50% and 300% of the tax due and possible imprisonment.

Invoice Requirements

Invoices issued in Chile must contain at least the following:

  • date of invoice issuance
  • a unique, sequential number of the invoice
  • supplier/issuer data (company name, address, VAT number)
  • customer data (address, VAT number, and other data if available)
  • full description of goods and services provided (quantity and type)
  • net price per unit (excl. VAT)
  • rate and amount of VAT applicable for the category of goods and services provided
  • the total amount of VAT
  • date of delivery
  • payment method
  • the invoice total (incl. VAT)

E-Invoicing

As one of the smallest countries in LATAM, but at the same time, the first country in the world, Chile introduced mandatory e-invoicing and mandatory electronic document transmission.

The Electronic Tax Document (Documento Tributario Electrónico – DTE) is a structured and electronically signed data document in XML format that is being send to the tax authority SII (Servicio de Impuestos Internos).

Electronic invoicing reaches almost all Chilean economy segments, including rural taxpayers and small businesses, since February 2018.

How to apply for the issuing of electronic invoices?

  1. Business entities must first apply for the Folio Authorization Code (Código de Asignación de Folios – CAF) on the website of the Chilean Tax Authority (SII)
  2. Once approved, SII will provide the business entity with a CAF digital signature for issuing DTE invoices
  3. The CAF number provided by SII is not permanent. The SII issues the CAF once a year.

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.

Real-Time Invoice Reporting

Real-time reporting to Chilean Tax Authorities (SII) is mandatory via the Chilean Purchase and Sales Registry (Registro de Compras y Ventas – RCV).

The RCV is a system available on the Chilean Tax Service portal (SII), which consists of two registries: a Purchase Registry (RC) and Sales Registry (RV). The purpose of this system is to control all VAT transactions made by the taxpayer in real-time.

How does Real-Time Invoice Reporting In Chile work?

  1. The entrepreneur sends an electronically signed XML data message about the transaction to the Chilean Tax Authority (SII).
  2. Chilean Tax Authority (SII) checks the XML message’s content, adds a digital stamp, and sends back confirmation to the entrepreneur.
  3. Once confirmed by SII, the invoice can be issued to the customer.

Who is affected by this obligation?

All taxable persons in Chile are affected by this obligation.

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