Standard VAT Rate
19%
Digital Reporting Requirements / E-invoicing
Yes
Sales Tax on Cross-Border Electronically Supplied Services
Yes
Tax Authority Website
Internal Revenue Service (Servicio de Impuestos Internos)
The standard Value Added Tax (”Impuesto al Valor Agregado” (IVA)) rate in Chile is 19%, with some exemptions from Chilean VAT, such as cultural and sporting events.
Chile does not have reduced VAT rates.
There are additional taxes ranging from 15% to 50% on certain goods such as jewelry.
Digital services provided by non-resident taxpayers to end consumers in Chile have been subject to VAT since 2020. Non-resident service providers should register and account for VAT on these transactions.
In the case of B2B digital services, the Chilean resident should account for the VAT under the reverse charge mechanism.
VAT Rate: 19% VAT applied to the sale of affected digital services
Taxable digital services in Chile
Learn More About VAT on Digital Services in Chile
Marketplaces & platforms facilitating the supply of digital services are regarded as intermediaries between the supplier and the end consumer. As such, they should register and fulfill VAT obligations instead of the supplier.
Invoices should contain the following:
Mandatory B2B e-invoicing was introduced in phases, starting with large taxpayers in 2014, and it became mandatory for all taxpayers in 2018. E-invoicing was extended to B2C transactions in 2021.
Learn more about E-Invoicing in Chile
The Servicio de Impuestos Internos (SII) is the body responsible for e-invoicing.
All e-invoicing information can be found on the SII’s website including legislation, technical guides, and FAQs.
Chile has simplified VAT returns for foreign companies supplying qualifying digital services, as they are subject to a simplified tax regime. For more information, see Chile VAT on Digital Services Guide.
In the case of late filing of VAT returns and payments, the Chilean Tax Authority enforces the following penalties:
Fonoa does not provide professional tax opinions or tax management advice specific to the facts and circumstances of your business and that your use of the Specification, Site, and In addition, due to rapidly changing tax rates and regulations that require interpretation by your qualified tax professionals, you bear full responsibility to determine the applicability of the output generated by the Specification and Services and to confirm its accuracy. No professional tax opinion and advice. Fonoa does not provide professional tax opinions or tax management advice specific to the facts and circumstances of your business and that your use of the Specification, Site, and In addition, due to rapidly changing tax rates and regulations that require interpretation by your qualified tax professionals, you bear full responsibility to determine the applicability of the output generated by the Specification and Services and to confirm its accuracy.