Chile: Significant Changes on VAT Reporting Obligations

The tax administration of Chile has issued Resolution 61/2017, which introduces significant changes to the VAT compliance obligations of Chilean taxpayers. Effective August 1, 2017, taxpayers will no longer be required to submit their ledgers of sales and purchases to the Chilean tax administration (SII). Instead, the regulation provides for a new ledger of purchases and sales that will be filled and prepared by the SII based on the electronic invoices reported by businesses located in Chile. Also, based on the same information, the SII will prepare a “proposal” of periodic VAT returns for taxpayers. This return will not be mandatory, as taxpayers will be able to modify its content with information that was not included on the document; however, since the SII claims that 99% of the relevant tax information should be in their system at the time the periodic tax return is prepared, it is expected that few modifications will be necessary to the "proposed" returns.

Author

Ramon Frias

Ramon is a Tax Counsel on the Regulatory Analysis team at Sovos. He is licensed to practice law in the Dominican Republic and is a member of the Dominican Bar Association. He has a Certificate Degree from Harvard University as well as a J.D. from the Universidad Autonoma de Santo Domingo. Ramon has written a number of essays about tax administration and has won the first prize in the international essays contest sponsored by the Inter American Center of Tax Administrations (CIAT). Prior to joining Sovos, Ramon worked for more than 10 years in the Department of Revenue of the Dominican Republic where he served as Deputy Director. He is proficient in French and Spanish.
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