Foreign service providers that provide digital services to individuals in Chile must register for the simplified value-added tax (VAT) regime and withhold a 19% VAT on the payment for digital services. Noncompliance could trigger audits from the tax authority and withholdings through credit card issuers.
The Chilean tax authorities have recently emailed foreign service providers that may be providing digital services to Chilean users and are not in compliance with current legislation.
Source EY
Latest Posts in "Chile"
- Chile Clarifies VAT Liability for Digital Platforms in Domestic Transactions: Platform Operators Not Accountable
- Chile Uncovers Major VAT Fraud by Shell Companies Using Data-Driven Audits and Digital Forensics
- Chile Grants Automatic VAT Penalty Waiver After Technical Issues Delay Tax Filings
- Chile Clarifies VAT Responsibility of Digital Intermediation Platforms for Domestic Transactions
- Chile Requires Bi-Annual Tax Compliance Certificates for Local Service Providers Starting March 2026
