Electronic invoicing in Chile
Chile has long been a leader in adopting electronic invoicing, starting in 2001 with voluntary adoption for taxpayers.
Its status as a pioneering country with e-invoicing is reflected by the fact that all taxpayers in the nation must issue and receive electronic invoices – one type of Electronic Tax Document (DTE).
This page has all the vital information you need to understand Chile’s e-invoicing regime and how to ensure compliance. Bookmark this overview to stay updated on any future regulatory updates.
Table of contents
1. How does e-invoicing work in Chile?
2. Characteristics of electronic invoicing in Chile
3. Types of electronic documents in Chile
4. Format of electronic invoices and documents in Chile
5. Timeline of e-invoicing adoption in Chile
6. Penalties: What happens if I don’t comply to e-invoicing in Chile?
7. What else do I need for VAT compliance in Chile?
Validation
The current legislation requires companies to send all DTEs to the SII, Chile’s tax authority, in real time, after which they will inform the taxpayer about their acceptance. In some cases, the SII's authorisation must precede the document's sending to the client. This is the case for dispatch guides not accompanied by electronic invoices.
Contingency
Mandatory for all DTEs that are sent to the SII for validation. However, the SII accepts that such documents continue to be issued when such a referral is not possible. In such cases, a contingency system has been established that will allow the SII to refer and validate these.
Synchronous process
All local or export invoices, or debit or credit notes, must be declared to – and validated by - the tax administration.
File retention
All documents must be retained for six years due to the provisions of the Chilean Tax Code.
Acknowledgement of receipt
In principle, recipients of electronic invoices must generate an acknowledgement of receipt for the invoices they receive. However, current legislation establishes that it will be considered formally accepted after a period of eight days from the receipt of an invoice.
Factoring operations
One of the most important changes introduced by the 30-Day Payment Law was the incentive for factoring operations with electronic invoices issued by taxpayers within the Internal Revenue Service billing system. The electronic invoice thus becomes a negotiable instrument for suppliers, who can sell such invoices on the market as if it were another security. This has resulted in the recipients of such invoices carefully monitoring the changes generated in the ownership of the invoices they have received.
Characteristics of electronic invoicing in Chile
Chile B2B e-invoicing
Chile mandates that every established company must issue and receive electronic invoices.
While the country’s journey with e-invoicing started in the early 2000s, it wasn’t until 2018 when it became mandatory for businesses of all shapes and sizes.
Businesses must follow many rules and requirements to be compliant with Chile’s B2B e-invoicing mandate. These include using an electronic signature, securely archiving e-invoices for six years, meeting the strict administrative procedure and more.
Chile B2G e-invoicing
As with B2B transactions, Chile requires B2G transactions to be documented and processed through electronic invoices. All organisations must issue and receive e-invoices when dealing with governmental and public administration entities.
B2G transactions have the same stringent requirements as B2B and B2C transactions where security is involved. These standards ensure that documents cannot be tampered with and are approved as authentic and accurate by the SII.
Types of electronic documents in Chile
Chile has requirements for other electronic documents beyond e-invoices. Regulations include other e-documents related to buying and selling goods that taxpayers should be aware of, such as:
- Sales invoice: Required in B2B transactions and generators of tax credit.
- Purchase invoice: For B2B purchases in which the buyer assumes the obligation to issue the invoice.
- Dispatch guide: Mandatory document that authorises the transport of goods sold.
- Sales and services ticket: Mandatory in cases of B2C sales. They don’t generate tax credit.
- Invoice settlement: Issued by the commission agent to the client to invoice his commission and the registration of the payment to the principal.
- Debit and credit note: They apply in all the above cases except for the dispatch guides.
Format of electronic invoices and documents in Chile
There are some common elements of electronic documents (DTE), such as e-invoices, used in Chile – including:
- Header: Used to identify the sender, the receiver and the total amount, among other data.
- Detail by item: Data on each item sold, such as weight, value and quantity.
- Discounts and surcharges: Identifies the total discounts or surcharges.
- Reference information: Identifies the documents associated with the issuer.
- Commissions and other charges: Mandatory field for invoice settlements.
- Electronic stamp of the SII: Electronic signatures on the fields defined as representative of the document, including the Folios Authorization Code provided by the SII.
- Electronic signature: Verifies the integrity of the DTE’s content. E-signatures must use a digital certificate granted by an SII-accredited certification company.
Timeline of e-invoicing in Chile
A mandate as significant as Chile’s e-invoicing ruling takes time to develop and implement. Here are the key dates of its development:
- 2001: E-invoicing is implemented as a voluntary scheme for taxpayers
- 2014: VAT e-invoicing is made mandatory for established organisations
- March 2018: B2B e-invoicing is made mandatory for established organisations
- March 2021: B2C e-invoicing is made mandatory for established taxpayers
Penalties: What happens if I don’t comply with e-invoicing in Chile?
Chile has penalties in place for taxpayers who do not comply with the mandate’s requirements, including a fine of 50-500% of the amount of the operation.
The aforementioned fine applies to:
- Failing to issue delivery guides for invoices, debit notes, credit notes, receipts
- Using unauthorised receipts, invoices, debit notes, credit notes, delivery guides
The former will also result in the physical location where the violation was committed being closed for up to 20 days. Repeated violations of this kind within three years may result in imprisonment.
What else do I need for VAT compliance in Chile?
There are other obligations established taxpayers in Chile need to meet, including general VAT compliance. Not meeting what’s required by tax authorities and governments can be costly, and that applies in Chile – so be sure you know what is expected of your organisation through our overviews.
These requirements can become even more demanding when considering your business’ obligations in other countries. That’s why Sovos is your ideal compliance partner.
FAQ
Is e-invoicing mandatory in Chile?
Chile requires every established taxpayer to issue and receive electronic invoices (Electronic Tax Documents, or DTE).
Who needs electronic invoicing in Chile?
Every established taxpayer in Chile is required to issue and receive electronic invoices when transacting.
Can an electronic invoice be cancelled?
An e-invoice can be cancelled in Chile if the cancellation is issued in the same tax period. An electronic credit note containing a field that indicates the annulment must be generated.
How much time is there to cancel electronic invoices in Chile?
Electronic invoices must be cancelled in the same tax period as they were issued.
What is an electronic tax document (DTE)?
In Chile, electronic tax documents (DTE) is a general name for digital documents related to buying and selling goods and services. Electronic invoices are the most prevalent type of DTE in the country.
How do I verify the authenticity of an electronic invoice?
In Chile, electronic invoices must be secured with an electronic signature – technology that validates the integrity of the document and its content. They must also be cleared via the SII before being sent to the buyer.
What is the deadline for claiming or accepting an electronic invoice?
If the recipient of an electronic invoice does not generate an acknowledgement of receipt within eight days of receiving the document, it will be considered as formally accepted.
What happens if our supplier has declared the invoice, but as customers we have not received it?
Customers have eight days to respond to an e-invoice once it has been sent through SII. If it is refused or not received, the buyer must contact the seller via email. If no acknowledgement is given within that period, it will be considered formally accepted.
Setting up e-invoicing in Chile with Sovos
Electronic invoicing is becoming more common globally, following the lead of Latin American countries like Chile, and compliance must be a priority.
E-invoicing is becoming global, but it’s fragmented everywhere you do business, solidifying the need to choose a single vendor for compliance. Sovos is a tax compliance partner you can trust.
Focus on what truly matters and reclaim your time, knowing Sovos has your back. Speak with a member of our team today to begin reclaiming your time.
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