Chile Shifts VAT Collection on Foreign E-Commerce to Payment Providers from June 2026

• From June 2026, Chile will require payment providers to withhold 19% VAT on remote sales by non-resident sellers to Chilean consumers.
• The VAT liability shifts from non-resident sellers to Chilean financial institutions, targeting digital platforms and e-commerce.
• Payment providers must check a published list of non-compliant sellers and withhold VAT at payment if listed.
• Withholding does not apply if the purchaser proves Chilean VAT registration; financial institutions must keep detailed records and submit semiannual reports.
• The first list of non-compliant sellers will be published on 15 June 2026, with the first report due by February 2027.

Source: vatcalc.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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