E-invoicing in Chile

E-invoicing is mandatory in Chile for all business-to-government (B2G), business-to-business (B2B), and business-to-consumer (B2C) transactions under the electronic tax document system (Documento Tributario Electrónico, DTE), administered by the Internal Revenue Service (Servicio de Impuestos Internos, SII).

Nonresident businesses registered under the Simplified Tax Regime (covering cross-border digital services and remote sales of low-value goods) are exempt from the DTE mandate and declare VAT via the SII’s Digital VAT Portal.

Chile does not operate a separate public procurement e-invoicing standard; public sector transactions follow standard DTE rules. 

• Suppliers to government agencies and public entities must issue SII-validated e-invoices. 
• Invoices are integrated with Chile’s public procurement platform (Mercado Público) for automated matching with purchase orders. 
• Public entities cannot require paper invoices and must accept or reject validated DTEs within the standard eight-day commercial window.

Chile operates a mandatory pre-clearance model for all domestic B2B transactions. Paper invoices carry no legal validity for taxpayers within scope.

The DTE document scope covers 10 standardised XML document types, including sales invoices, exempt invoices, purchase invoices, credit/debit notes, export documents, and dispatch guides.

Issuance options include:

• Free Invoicing System (Sistema de Facturación Gratuito del SII): For small businesses with low invoice volume. A web-based portal operated directly by the SII that requires no external software integration and allows taxpayers to issue, receive, and manage DTEs directly through the SII website. 
• Proprietary or Market Provider System (Sistema de Facturación Propio o de Mercado): For businesses with higher transaction volumes or complex ERP systems. Allows direct API integration between the business’s own accounting software or certified third-party e-invoicing provider and the SII’s web services.

The clearance workflow is as follows:

• The issuer transmits the digitally signed XML invoice to the SII.
• The SII validates the document in real time and assigns a Folio Authorization Code (CAF).
• The validated DTE (XML with mandatory PDF417 barcode) is delivered to the buyer via email or web service.

The buyer has eight calendar days from receipt to accept or reject the DTE in the SII system. If no action is taken, the invoice is deemed legally accepted.

B2C transactions are documented using mandatory electronic receipts. Retailers and service providers must issue electronic receipts through SII-certified point-of-sale (POS) systems or cash registers. Transaction data must be transmitted to the SII within one hour of issuance. A printed copy containing the mandatory PDF417 barcode must be provided to the consumer for in-person sales (digital delivery is permitted for online transactions). 

Chile operates a continuous transaction control (CTC) model where clearance serves as the reporting event. 

• No separate ledgers: Real-time DTE clearance automatically populates the SII’s electronic Purchase and Sales Register (Registro de Compras y Ventas, RCV), eliminating manual sales ledgers or daily summaries. 
• Pre-filled VAT return (Propuesta de IVA): The SII automatically generates a monthly Form 29 VAT return proposal from cleared DTE data. Taxpayers review and confirm the proposal by the 20th of the following month. 
• Archiving: Issuers and recipients must retain original XML DTE files in an authentic, tamper-proof state for a minimum of six years. Printed copies do not satisfy statutory record-keeping rules. 

Failure to comply with Chilean DTE and electronic receipt obligations may result in: 

• Administrative fines: Fines of 1 to 20 tax units (UTM) per violation for non-issuance or technical noncompliance, up to a statutory maximum of 200 UTM.
• Temporary business closure: Premises closure for up to 20 days for repeated failure to issue electronic receipts at point of sale.
• Loss of input VAT credit: Buyers cannot claim input VAT credits on invoices not validated through the SII clearance platform.
• Fraud and evasion penalties: Fines from 50% to 300% of unpaid tax, plus potential criminal prosecution for issuing false or fraudulent DTEs.
• Late payment interest and CPI restatement: Unpaid VAT liabilities resulting from invoicing discrepancies are adjusted for inflation plus 1.5% monthly interest.

As Chile’s DTE infrastructure continues to develop — including the ongoing enhancement of dispatch guide requirements and the SII’s compliance verification programme for digital platforms — enforcement is expected to intensify. Businesses operating in Chile are strongly advised to ensure their accounting and invoicing systems are fully integrated with the SII’s DTE web services and that electronic receipts are transmitted within the one-hour window for all B2C transactions.