Chile is implementing major changes to its VAT system to better regulate digital marketplaces and cross-border e-commerce:
Marketplace VAT Obligations
- Platform operators (e.g., Mercado Libre, Amazon, Shein) will be responsible for collecting VAT if:
- They facilitate third-party transactions.
- The transaction is subject to VAT.
- Neither buyer nor seller is a registered VAT taxpayer in Chile.
- If sellers fail to declare their VAT status, the platform becomes liable for VAT.
- Platforms must report seller activity to the Chilean tax authority.
Low-Value Goods Rule
- VAT now applies to remote sales of goods ≤ USD $500 destined for Chile.
- The $500 threshold includes product price, shipping, insurance, and packaging.
- The previous de minimis exemption of USD $41 is eliminated.
- VAT must be collected at the time of online purchase, even before goods enter Chile.
Simplified VAT Regime for Foreign Sellers
- Non-resident platforms and sellers must register electronically via Chile’s Digital VAT Portal.
- Early registration began August 1, 2025.
- A 19% VAT applies under this regime, replacing import VAT and customs duties for low-value goods.
E-Commerce Trends in Chile
Chile’s e-commerce sector is booming:
- B2C online sales reached $11.5 billion USD in 2024, up fivefold from a decade ago.
- Penetration rate expected to surpass 67% by 2029.
- Top categories: clothing, groceries, tech, travel, and personal care.
- Cyber events like CyberDay and CyberMonday drive massive spikes in digital sales.
- Platforms like Falabella, Ripley, Paris, Linio, and Mercado Libre dominate the market.
Chile Introduces New VAT Compliance Rules for Nonresident Sellers and Digital Platforms
- Chile introduced new VAT compliance rules for nonresident sellers and platforms.
- Nonresident remote sellers and digital platform operators must register in the simplified VAT regime.
- A 19 percent VAT rate applies to services offered by third parties on digital platforms, with some exceptions.
- VAT declarations and payments must be submitted electronically via the SII’s online system.
- Taxpayers in the simplified VAT regime cannot claim input VAT credits and do not need to issue tax documents.
- The resolution takes effect on October 25.
Source: globalvatcompliance.com
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Other sources
- Chile Expands VAT to Digital Platforms and Marketplaces for Low-Value Goods in 2025
- E-commerce in Chile – statistics & facts | Statista
- eCommerce in Chile Keeps Growing
- Chile VAT digital services B2C non-residents new requirements – vatcalc.com
