Chile operates a value-added tax (VAT) system that is broadly aligned with international VAT/GST principles and shares similarities with the multistage consumption tax frameworks common across Latin America and internationally.
Chilean VAT is administered by the Internal Revenue Service (Servicio de Impuestos Internos, SII). The tax authority is responsible for issuing guidance, processing VAT registrations and returns, overseeing compliance obligations, and enforcing VAT rules in Chile.
Businesses carrying out taxable activities in Chile — whether resident or nonresident — must comply with Chilean VAT obligations. This includes VAT registration where required, applying the correct VAT rates, issuing VAT-compliant e-invoices in accordance with Chile’s mandatory e-invoicing regime, maintaining appropriate accounting records, and filing periodic VAT returns in accordance with Chilean VAT rules.