Chile: Tax reform bill introduces VAT liability for sales of low-value goods

Tax authority expected to issue further guidance to clarify the proposed regime

Tax authority expected to issue further guidance to clarify the proposed regime

The government of Chile on 29 January 2024 submitted a tax reform bill (Spanish)  to parliament. The proposal includes measures to introduce a new value added tax (VAT) liability for sales of goods, valued below US$500, imported from outside the country and sold to consumers in Chile. It also aims to clarify marketplace/platform liability for sales they facilitate.

If adopted, the Chilean tax authority is expected to issue further guidance to clarify the proposed regime.


The tax reform proposes to impose VAT on nonresident sellers of low-value goods (LVG) to consumers in Chile. In this context, LVG refers to goods valued at no more than US$500, or its equivalent in local currency, inclusive of any additional charges collected in the same transaction.

The bill would establish a presumption that foreign goods valued up to US$500, purchased by a Chilean consumer not subject to VAT, are intended for use within Chile and therefore subject to VAT at the point of sale. As a result, the importation of such goods would be exempt from VAT.

The proposal would not extend to domestic sales of goods, which would continue to adhere to the standard VAT rules.

B2B vs. B2C

Nonresident sellers of LVG would be required to account for VAT for sales made to consumers (B2C sales). B2C sales would be sales of in-scope goods made to persons that are not registered for VAT.

For sales made to business customers (B2B sales), the customers would be required to self-assess and remit the applicable VAT. For this purpose, the local customer would need to inform the nonresident seller of their VAT registration status and provide their VAT identification number. If the buyer does not provide this information, the nonresident seller will be required to charge and collect the applicable VAT.

While the VAT collection obligation would only apply to B2C sales, nonresident sellers would also be required to report their B2B sales to the tax authority.

Marketplace rules

The bill proposes to expressly introduce marketplace rules that deem the marketplace/platform as the actual seller of the underlying goods (or services) it facilitates. Currently, digital platforms are liable for VAT on sales of services they facilitate from overseas sellers based on guidance published by the tax authority. The bill would formally implement this requirement into the law and expand it to platforms facilitating sales of LVG. 


The bill would expand the current simplified compliance mechanism applicable to overseas sales of B2C services to sales of LVG. As a result, there would be no registration threshold and registration under the simplified VAT regime by itself does not create a permanent establishment (PE) for income tax purposes.

The Chilean tax authority may require domestic credit card issuers or other analogous payment methods to withhold VAT on behalf of nonresident sellers who fail to register.

VAT invoice

Nonresidents registered under the simplified VAT registration regime are not required to issue any VAT compliant invoices. It is sufficient that the invoice includes information on the value of the transaction and the VAT amount.

Penalties and interest

The standard penalty provisions in the tax code apply. 

For more information, contact a KPMG tax professional:

Javiera Suazo |

Philippe Stephanny |

Chinedu Nwachukwu |



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