North America

Chile VAT Compliance: An Overview for Businesses

VAT compliance in Chile can be more resource-heavy than in other countries, largely because of the different tax initiatives and mandates in play.

Keeping on top of your requirements—especially as rules change over time—takes a lot of work, especially if you’re a multi-national organization. That’s where this page can help, providing an overview of the different elements that can play into Chile VAT compliance.

Table of contents

1. General VAT information for Chile 2. VAT rules in Chile 3. Requirements to register for VAT in Chile 4. Cross-border digital purchases and services 5. Invoicing requirements in Chile 6. Penalties for non-compliance with VAT in Chile 7. Solutions for VAT compliance in Chile 8. FAQ 9. Additional resources

General VAT information for Chile

Businesses are not currently obligated to send and receive invoices electronically when dealing with other businesses. However, as per the amendment to the Law on Accounting, a mandate is on the way.

While mandatory B2B e-invoicing will not take effect until 1 January 2028, businesses can submit B2B e-invoices to the eAddress system voluntarily starting from 30 March 2026. If they choose to issue e-invoices, the issuer must ensure the integrity of the content and the authenticity of the origin by, for example, using an electronic signature.

A B2B e-invoicing mandate has been in development for years and has been subject to several postponements. Most recently, in June 2025, the commencement date of the obligation was delayed from 1 January 2026 to 1 January 2028.

VAT rules in Chile

Tax in Chile requires knowledge of several mandates. With regards to VAT, this tax is levied on the sales of movable and immovable tangible property, provision of services and imports. Exports are exempt.

Failing to comply can lead to costly penalties and even imprisonment, so ensure you keep current on what affects your business.

Chile e-invoicing

Chile is a leader in electronic invoicing, starting its journey in 2001 through a voluntary scheme. There is now a mandate that dictates that all taxpayers in the country must issue and receive e-invoices or e- receipts in B2C transactions.

The nation’s e-invoicing scheme has strict rules and regulations. Find out more with our dedicated Chile E-invoicing page.

Requirements to register for VAT in Chile

To register for VAT in Chile, businesses must register and obtain their RUT (Rol Unico Tributario).   To carry out this procedure, Chilean residents must have their tax code or digital certificate issued by the SII.

There is no VAT threshold in Chile for non-resident organisations. As a result, they are required to register for VAT when making their first taxable supply. Taxable supplies include movable and immovable goods, services, imports, intangibles relating to industrial properties and digital services.

Should an organisation qualify for VAT registration in Chile, it will need to follow this process:

  1. Request a tax code by entering www.sii.cl
  2. Request registration and obtain a RUT through www.sii.cl
  3. Submit an Affidavit of Commencement of Activities within 2 months of the start of activities. The procedure can be online or in person through Form 4415.

Cross-border digital purchases and services

Since August 1, 2025, non-resident platforms and digital businesses can register in the simplified system of the SII, which does not require domicile in Chile and allows them to declare and pay VAT on a monthly or quarterly basis.

From October 2025 VAT will be applied to all purchases made from Chile whose total value (including shipping costs) does not exceed 500 dollars. The tax will be calculated and withheld by the non-resident platform or digital business itself at the time of purchase, as long as they are registered in the special registry enabled by the Internal Revenue Service (SII).

Invoicing requirements in Chile

Chile was an early adopter of electronic invoicing, starting back in 2001 with a voluntary scheme for taxpayers. Since 2018, both B2B and B2G transactions require taxpayers to issue and receive e-invoices.

Electronic invoices in Chile must be sealed with an e-signature and securely archived for at least six years. There are several electronic documents that businesses must be aware of when operating in Chile, including sales e-invoices and purchase e-invoices.

Find out more about e-invoicing in Chile.

Penalties for non-compliance with VAT in Chile?

Chile has penalties in place for those who fail to comply with the country’s tax regulations.

If taxpayers file a tax return late, they can expect to be penalised by paying a fee of 10% of the due taxes. If they are late for five months, the penalty increases by 2% for every month—up to 30% of the tax amount.

Late tax payments will be penalised by paying an interest fee of 1.5% of the tax amount per month. Taxpayers will also be penalised for filing incorrect returns; when the tax declared is less than the final assessed amount, the penalty may range between 5% and 20% of the difference between the two amounts.

Tax evasion produces a more significant penalty. Taxpayers attempting to evade paying tax may be fined anywhere from 50% to 300% of the tax amount, plus they could be imprisoned for up to five years. Tax fraud may result in imprisonment for up to 10 years and a fine of 100% to 300% of the fraudulent tax return amount.

Solutions for VAT compliance in Chile

Chile’s tax obligations can take up significant resources, reducing the time and energy your team has to dedicate on internal matters. Rules and regulations change frequently too, especially when operating in other countries in addition to Chile.

Sovos pairs global solutions with local experience to aid you in compliance wherever you do business. This allows you to focus on what truly matters. Speak with our expert team to get started.

Get in touch with us

FAQ

The standard VAT rate in Chile is 19%, though there are exemptions for certain products and services.

Goods and services that are exempt from VAT in Chile include:

  • Education
  • Freight services
  • Real estate with limitations
  • Sports and cultural events
  • Used vehicles (namely cars and lorries)
  • When goods are exported

VAT may be withheld by the Withholding Agents designated by the SII from taxpayers subject to withholding, mainly for non-compliance with their tax obligations.

Exporters that are exempt from VAT, on sales made abroad, can recover the VAT on purchases – either by requesting a refund the following month, or via a special mechanism that involves the acquisition of fixed assets.

No, non-residents (foreign companies not established in the country) cannot recover VAT in Chile.

Yes, foreign companies looking to register for tax in Chile need to appoint a fiscal representative this is established in the country.

In Chile, VAT is typically due when goods or services are sold and supplied.

The deadline for filing Form 29 is the twelfth day of the month following the tax period you wish to declare.

In Chile, all natural or legal persons subject to taxes must be registered in the Single Tax Roll (RUT).  This number is a numerical series that identifies people and allows them to be part of Chile’s economic activity and make use of various services.

Additional resources

E-invoicing in Chile

Dive deeper into e-invoicing requirements in Chile.
Find out more

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