Chile implemented a Value Added Tax regime in 1973. It is termed Impuesto al Valor Agregado (IVA) locally and is subject to the oversight of the Servicio de Impuestos Internos (SII).
Should you register for Chilean VAT
Income from supplies of goods or services within the country are generally subject to VAT. This includes imports. Below is a summary of typical taxable transactions:
- Supply of movable and immovable goods;
- Sale of intangibles related to industrial property;
- Provision of services within the country or consumed locally but provided from outside the country;
- Imports; and
- Digital services, including provided by non-residents
Chilean VAT registration threshold
There is no VAT registration threshold in Chile – the first taxable supply makes registration mandatory. There is therefore no option for voluntary registration.
There is no VAT group scheme in Chile.
Non-resident traders operating in Chile
Foreign providers of goods or services may register for all taxes, including VAT, as non-residents. They must appoint a local representative. They must apply for a RUT number, as with resident companies.
Chilean VAT registration procedure
Businesses providing taxable supplies must VAT register and obtain a tax number Rol Único Tributario (RUT) from the SII. To apply, businesses must complete form 4415, and include:
- Certificate of incorporation;
- Proof of identification as a Chilean resident from one of the directors; and
- Power of attorney for a foreign business’ tax representative