Chilean VAT rates and VAT compliance

VAT in Chile is administered by the Internal Revenue Service (Servicio de Impuestos Internos, SII). Chile applies a single standard VAT rate. Unlike many countries with a VAT system, there is no reduced rate band — all taxable supplies are subject to the same 19% rate, with zero-rating for qualifying exports and a range of specific exemptions.

Some supplies are exempt from VAT in Chile under Decree Law No. 825. These commonly include:

• Education services
• Freight transport services
• Real estate transactions (with limitations — the sale and leasing of real estate is generally exempt, subject to specific rules around habituality and prior VAT credit)
• Entrance fees to sporting and cultural events organised by recognised institutions
• Used vehicles — specifically used cars and lorries
• International passenger transport services
• Importation of goods covered by diplomatic exemptions or other statutory exclusions
• Gold coins and monetary gold
• Certain financial and insurance services

Exempt supplies do not generate output VAT and generally do not allow recovery of input VAT related to those activities.

A VAT registration is required for all businesses carrying out taxable activities in Chile.

There is no VAT registration threshold in Chile for resident or nonresident businesses. Chilean-established businesses must register for VAT upon commencement of taxable activities by filing an Affidavit of Commencement of Activities (Inicio de Actividades) with the SII using Form 4415. Nonresident businesses supplying digital services or low-value goods to Chilean consumers must register under the Simplified Tax Regime through the SII’s Digital VAT Portal. All other nonresident businesses with a local presence must register under the full registration track by obtaining a tax identification number (RUT).

Get more information on VAT registration in Chile.

VAT-registered businesses in Chile must file monthly VAT returns using Form 29. Filing frequency is:

• Monthly: Required for all businesses on the full registration track, regardless of size or turnover. Form 29 is a multipurpose declaration covering VAT, provisional income tax payments, and payroll withholding in a single submission, due by the 20th of the following month.
• Monthly or quarterly: Available to businesses registered under the Simplified Tax Regime, using the simplified declaration on the SII’s Digital VAT Portal.

Returns include output VAT (fiscal debit) on sales, creditable input VAT (fiscal credit) on purchases (full registration track only), and any carry-forward credits from prior periods. Nil returns must be filed even during periods of inactivity.

All filings are submitted electronically through the SII’s online portal or through the Digital VAT Portal for Simplified Tax Regime filers.

Get more information on VAT returns in Chile. 

Foreign businesses storing goods in Chile must consider VAT registration if those goods are held for domestic sale.

Holding inventory within Chile — for example, in a warehouse or fulfilment centre — for resale to Chilean customers generally requires the foreign business to establish a Chilean legal entity and register for VAT under the full registration track. Importing goods into Chile triggers VAT at customs clearance; the importer of record is responsible for the customs VAT liability. Foreign businesses selling low-value goods (valued at USD 500 or less) remotely to Chilean consumers may register under the Simplified Tax Regime without establishing a local entity; however, if they hold inventory inside Chile they are likely to fall within the scope of the full registration track.

VAT is generally payable on the importation of goods into Chile.

• Import VAT is due at customs clearance, calculated on the customs value plus applicable customs duties (general rate 6%).
• The standard 19% VAT rate applies to most imported goods.
• For low-value goods (valued at USD 500 or less) purchased online from nonresident sellers registered under the Simplified Tax Regime, VAT is collected at the point of sale — those goods are then exempt from import VAT and customs duties at the border to avoid double taxation. For low-value shipments from unregistered sellers, VAT and customs duties remain payable at customs clearance in the usual way.
• VAT-registered general track businesses may recover import VAT as input tax credit, provided the goods are used for taxable activities and the customs declaration serves as the VAT deduction voucher.
• Import VAT on goods used for exempt activities or personal consumption is not recoverable.

Foreign businesses supplying digital services to Chilean consumers (B2C) — including streaming, cloud services, SaaS, online advertising, digital content, apps, online gaming, telecommunications, and intermediary platform services — are subject to Chilean VAT obligations.

Chile requires nonresident digital service providers to register under the Simplified Tax Regime through the SII’s Digital VAT Portal and charge and remit 19% VAT on B2C supplies.

No fiscal representative is required. Businesses registered under the Simplified Tax Regime cannot recover any Chilean input VAT. For B2B digital services supplied to Chilean VAT-registered businesses, 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 for those transactions. Where a nonresident provider fails to register, Chilean financial institutions may be designated as withholding agents to collect VAT from payments made to that supplier.

VAT-registered businesses on the full registration track may recover input VAT (fiscal credit) incurred on taxable business expenses through their monthly Form 29 returns by offsetting fiscal credit against fiscal debit. Recovery requires a valid electronic tax document (DTE) registered with and validated by the SII.

Businesses on the Simplified Tax Regime cannot recover any Chilean input VAT — the tax is a permanent cost under that registration track.

Nonresident businesses not established in Chile generally cannot recover Chilean input VAT without first establishing a local entity and registering under the full registration track.

Chile applies zero-rating to qualifying exports of goods and to qualifying cross-border services consumed entirely outside Chile, provided an export declaration is obtained from the National Customs Service (Servicio Nacional de Aduanas) and the SII has stamped the relevant invoice. Zero-rating allows VAT to be charged at 0% while preserving the right to recover related input VAT through the export VAT refund system.

Exporters may request a refund of accumulated input VAT attributable to export activities, either by claiming a refund in the month following the export or through a special mechanism for VAT credits attributable to fixed asset acquisition. Refund applications are reviewed by the SII and processing times vary depending on the size of the claim and the taxpayer’s compliance history.

Businesses on the full registration track must issue VAT-compliant electronic tax documents (DTEs) that include:

• Supplier and buyer name and RUT (tax identification number)
• Invoice date and a unique Folio Authorization Code (CAF) assigned by the SII
• Description of goods or services
• Quantity and unit price
• VAT rate and VAT amount, itemised separately from the net price
• Total amount due, inclusive of VAT
• PDF417 barcode containing key transaction data — mandatory for all DTEs; there is no QR code alternative 

Chile operates a mandatory DTE clearance system administered by the SII. All e-invoices and related fiscal documents must be transmitted to the SII for real-time validation before being delivered to the buyer. Once validated, the SII returns the document to the issuer, who then delivers it to the recipient — typically by email in XML format. The buyer has eight days to formally accept or reject the DTE through the SII’s system; if no action is taken within this period, the document is automatically treated as accepted.

The DTE system covers 10 types of fiscal documents in XML format, including sales invoices, VAT-exempt invoices, purchase invoices, credit and debit notes, dispatch guides, and export invoices. Paper invoices have no legal validity for businesses subject to the DTE mandate.

For B2C retail transactions, businesses must issue electronic receipts (boletas electrónicas). Electronic receipts must be transmitted to the SII within one hour of issuance. For in-person sales, a printed copy of the electronic receipt must be provided to the customer.

Businesses on the Simplified Tax Regime are not required to issue Chilean DTEs — they use the simplified declaration process on the Digital VAT Portal.

Time-of-supply rules:

• Goods: VAT generally becomes chargeable when the goods are sold or transferred — typically when the DTE is issued or when the goods are delivered, whichever occurs first.
• Services: VAT is generally due when the service is supplied or when payment is received, whichever occurs first.
• Imports: VAT is due at customs clearance (or at point of sale for low-value goods under the Simplified Tax Regime).

VAT records — including DTEs issued and received, customs declarations, and supporting accounting documentation — must generally be retained for a minimum of six years and made available for SII inspection upon request. VAT returns and payments are due by the 20th of the month following the end of the reporting period.