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
