Chile RCV live VAT invoice reporting
Chile obliges all tax payers to report live to the tax authorities (‘SII’) their VAT invoices via a new Registro de Compras y Ventas (RCV) online register. This results in the taxpayer receiving an SII digital approval signature in return, and the invoice being reviewed and approved by the customer. SII produces an automated monthly VAT return for the taxpayer to review and agree to.
RCV invoice VAT approvals and automated VAT return
The RCV online register captures data from submitted electronic sales invoices. Tax payers must submit their sales invoices to RCV Customers must approve within 8 days vendors’ submitted sales invoices to reconcile VAT due (by the vendor) and the VAT deduction (for the customer). As an alternative to RCV, taxpayers may develop their own software, or license a third-party software, for reporting invoices. However, this must be pre-certified by SII.
The Chilean tax authorities are then be in a position to produce tax payers’ draft VAT returns, Propuesta de IVA. Following this, tax payers must pay or appeal the VAT liability. The taxpayer can edit any discrepancies in the online Propuesta, except missing invoices or errors. This requires the participation of the original supplier.
Taxpayers are subject to fines of Monthly Tax Unit (MTU) 1 to MTU 12 per transaction (approximately €60 to €720 per document) for:
- Failure to report invoices via RCV;
- Failure to use a licensed similar platform; or
- Issuing paper invoices.
Libros mandatory e-invoices and monthly reporting
The RCV regime replaced the libros purchase and sales ledgers submission.
Libros electronic invoices were introduced for larger tax payers in November 2014, and rolled out for other tax payers subsequently. This obliged mandated companies to produce XML secure sales invoices. Tax payers were then required to produce monthly transaction-level e-reports for the tax authorities - 10 separate document types (collectively called “Documentos Tributarios Electrónicos”), in addition to monthly and annual reports.