Standard VAT rate: 19%
E-Invoicing: mandatory for B2G, B2B and B2C
Reporting type: real-time to SII (Chilean Tax Authority)
Digital service tax: no
Chilean VAT number contains 7 or 8 digits, dash, and one check number (i.e. 01.234.567-8).
The standard VAT rate in Chile is 19%. Some of goods and services are exempt from Chilean VAT, such as exportations, tickets for sports and cultural events, education and international transport. There are no reduced rates in accordance with indirect tax legislation.
19% (Standard) – Applies to all taxable supplies, with certain exceptions
0% (Zero) – exportations of goods and services, admissions for sporting and cultural events, education, used cars and international transport
All businesses with Chilean VAT number must submit periodic VAT reports.
For all companies that operate in Chile, VAT returns must be submitted on a monthly basis.
The penalties vary depending on the type of non-compliance or breach of the tax legislation.
Penalties that may be triggered in case of non-compliance or breach of the tax legislations are as follows:
Invoices issued in Chile must contain at least the following:
As one of the smallest countries in LATAM, but at the same time the first country in the world, Chile introduced mandatory e-invoicing and mandatory electronic document transmission.
The Electronic Tax Document (Documento Tributario Electrónico – DTE) is a structured and electronically signed data document in XML format that is being send to the tax authority SII (Servicio de Impuestos Internos).
Electronic invoicing reaches almost all segments of the Chilean economy, including rural taxpayers and small businesses since February 2018.
In cases where products are shipped without an electronic invoice, sellers may be subject to fines of between $77 and $1,500 per transaction. On the other hand, falsifying a DTE is a criminal offense, which triggers fines of between 50% and 300% of the tax due and possible imprisonment.
Real-time reporting to Chilean Tax Authorities (SII) is mandatory via Chilean Purchase and Sales Registry (Registro de Compras y Ventas – RCV).
The RCV is a system available on the Chilean Tax Service portal (SII), which consists of two registries: a Purchase Registry (RC) and Sales Registry (RV). The purpose of this system is to control all VAT transactions made by the taxpayer in real-time.