Chilean VAT registration

In Chile, the requirement to register for value-added tax (VAT) depends on whether the business is established in Chile and the nature of the taxable activities carried out. Chile operates with no VAT registration threshold — for both resident and nonresident businesses, the first taxable supply triggers a mandatory registration obligation. There is no voluntary registration concept in Chilean VAT law, since the absence of any threshold means registration is compulsory from the outset of taxable activity.

For Chilean-established businesses, VAT registration is mandatory upon commencement of taxable activities. Businesses must file an Affidavit of Commencement of Activities (Inicio de Actividades) with the SII within two months of beginning taxable activities, using Form 4415. Registration is required regardless of the size, nature, or volume of the business. There is no turnover-based registration threshold and no option to remain unregistered while trading.

Nonresident businesses face a two-track registration system depending on the nature of their activities:

• Full registration track: Foreign businesses without domicile or residence in Chile that carry out taxable activities other than digital services or remote sales of low-value goods — such as importing goods, holding domestic inventory, or providing services through a local presence — must register for VAT in the same manner as Chilean-established businesses. Full registration requires obtaining a tax identification number (RUT) from the SII, typically through a Chilean tax representative who is appointed by power of attorney. Foreign businesses on the full registration track must issue Chilean electronic invoices and may recover input VAT through their periodic returns.
• Simplified Tax Regime track: Foreign businesses supplying digital services to Chilean consumers (B2C), as well as foreign sellers of low-value goods (valued at USD 500 or less, including shipping) and digital platforms facilitating such sales, must register through the SII’s Digital VAT Portal under the Simplified Tax Regime. Registration under this track does not require a fiscal representative, does not create a permanent establishment for income tax purposes, and does not require the issuance of Chilean electronic invoices. However, businesses registered under the Simplified Tax Regime cannot recover any Chilean input VAT. Registration is available in both English and Spanish, and once validated, the SII issues a user number for the purposes of declaring and paying VAT.

For B2B supplies of digital services by nonresident businesses to Chilean VAT-registered buyers, the reverse-charge (change-of-subject) mechanism applies and the Chilean purchaser accounts for the VAT — removing the need for the foreign supplier to register.

Chile’s Simplified Tax Regime serves a broadly analogous purpose for digital services and low-value goods but operates as a standalone national regime with no regional coordination.

Foreign businesses may need to register for Chilean VAT — either through the full registration track or the Simplified Tax Regime — if they engage in activities such as:

• Supplying digital services (such as SaaS, streaming, online advertising, cloud services, and digital content) to Chilean consumers (B2C), from the first taxable supply
• Selling low-value goods (valued at USD 500 or less) remotely to Chilean consumers through digital platforms or direct online channels
• Operating a digital platform or marketplace that facilitates remote sales of digital services or low-value goods to Chilean consumers
• Importing goods into Chile (imports are subject to VAT at customs clearance)
• Holding inventory within Chile for resale to Chilean customers
• Making domestic B2B or B2C supplies of goods or services within Chile through a local entity or permanent establishment
• Running ecommerce operations delivering taxable goods into Chile

For B2B digital services supplied to Chilean VAT-registered businesses, no foreign supplier registration is required — the Chilean buyer accounts for the VAT under the reverse-charge mechanism.

Full registration (resident and nonresident businesses with a local presence)

VAT registration in Chile is obtained through the SII as part of the broader tax registration and Inicio de Actividades process. Applicants typically need to provide:

• Completed Form 4415 (Inicio de Actividades/VAT registration application) submitted to the SII
• Certificate of incorporation or equivalent founding document 
• Proof of identification of a Chilean-resident director, partner, or authorised representative 
• Power of attorney appointing a Chilean tax representative (mandatory for foreign businesses without a local presence) 
• Description of business activities and the nature of taxable supplies to be made in Chile
• Registered address and details of the business premises in Chile
• Bank account information for tax settlement purposes

Applications are submitted to the SII online at sii.cl or in person at an SII office. Registration should generally be completed within two months of commencing taxable activities.

Simplified Tax Regime registration (nonresident digital service providers and low-value goods sellers)

Foreign businesses registering under the Simplified Tax Regime must complete the Registration Form through the SII’s Digital VAT Portal (available in English and Spanish) and provide:

• Business legal name and home-country tax identification number (e.g., EIN, VAT number, or equivalent)
• Description of digital services or goods sold to Chilean consumers
• Preferred filing period (monthly or quarterly)
• Preferred declaration currency (CLP, USD, or EUR)
• Three valid contact details

No fiscal representative is required under the Simplified Tax Regime. Once validated by the SII, a unique user number is issued for the purposes of VAT filing and payment. The typical processing timeline is approximately 30 days from submission of a complete application.

• Structure: The Rol Único Tributario (RUT) is Chile’s universal tax identification number and doubles as the VAT number — there is no separate VAT registration number. The RUT consists of a 7 or 8-digit serial number plus a single check digit (0–9 or the letter K), formatted with a hyphen (e.g., 12.345.678-5). Nonresident businesses registered under the Simplified Tax Regime receive a user number rather than a standard RUT.
• Used for VAT reporting, electronic invoice issuance, customs declarations, and all interaction with the Internal Revenue Service.

After registering for VAT in Chile, businesses must comply with ongoing VAT obligations, including:

• Filing periodic VAT returns — monthly for most businesses on the full registration track, using Form 29, due by the 20th of the following month; monthly or quarterly for businesses on the Simplified Tax Regime, also due by the 20th of the following month
• Charging and collecting Chilean VAT at the applicable rate (standard rate 19%; 0% for qualifying exports)
• Issuing VAT-compliant e-invoices (facturas electrónicas) through Chile’s mandatory e-invoicing system for businesses on the full registration track; businesses on the Simplified Tax Regime are not required to issue Chilean electronic invoices
• Maintaining VAT records and accounting documentation in line with Chilean tax legislation
• Paying VAT due by the filing deadline, with payments accepted in CLP, USD, or EUR under the Simplified Tax Regime

Failure to comply with Chilean VAT requirements may result in penalties, interest charges, and enforcement action by the Internal Revenue Service, particularly in cases of late registration, failure to issue compliant electronic invoices, incorrect filings, or unpaid VAT liabilities. Nonresident businesses on the Simplified Tax Regime that fail to register or comply may have VAT withheld on their behalf by Chilean financial institutions acting as withholding agents.