Chile: Procedure for registration in simplified VAT regime; other direct and indirect tax developments

Taxpayers without domicile or residence in Chile who sell low-value goods (≤ $500 USD) to individuals who are not value added tax (VAT) taxpayers in the country must register in the simplified VAT regime. Also required to register are operators of digital platforms that facilitate these sales or services, “redeliverer” companies, “drop shipping” businesses, and others that intermediate remote sales destined for Chile, provided the sellers are not VAT taxpayers in Chile.

The registration procedure is carried out through the Chilean Internal Revenue Service (Servicio de Impuestos Internos or SII) digital VAT portal, using a form that requests taxpayer information, type of activity, tax period (monthly or quarterly), declaration currency (USD, EUR, or CLP), and three valid contacts. Once validated, a user number is assigned, and access is enabled to declare and pay VAT.

The resolution enters into force on October 25, 2025. From that date, obligated taxpayers must be registered and apply VAT to their operations. Registration can be carried out starting in August 2025, and those already registered must update their records according to the new instructions.

Read an August 2025 report (Spanish and English) prepared by the KPMG member firm in Chile

Other direct and indirect tax-related topics discussed in this report include:

• VAT payment by remote sellers and digital intermediation platform operators
• General anti-avoidance rule (GAAR) in the incorporation of a joint stock company
• Write-off of debts between related companies
• Severance pay for years of service granted to partners or shareholders
• Application of stamp tax (ITE) in repurchase agreements
• Reporting obligation for payments made by insurance companies
• Billing for modifications to public works concession contracts
• Compensation and expense reimbursement in mandate contracts
• VAT on hotel services