VAT Number Format In Chile

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

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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

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VAT Payments And Returns In Chile

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

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VAT Returns Frequency In Chile

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

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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.

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)

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:

• ‍Servicio de Impuestos Internos - SII

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?

1. The selling party generates an XML document with all required information to issue an electronic invoice (DTE) and sends it to Chilean Tax Authorities (SII).
2. SII validates the content of the XML message, adds a digital stamp, and sends the authorization back to the seller.
3. Once the authorization is received, the selling party is allowed to issue an invoice to the buyer in a paper or electronic form, following Chilean invoicing rules, i.e. including all mandatory information on the invoice.

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How to apply for the issuance 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.

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Date updated [May 12, 2021]

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