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Summary

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

Compliance and rates

 

VAT number format

Chilean VAT number contains 7 or 8 digits, dash, and one check number (i.e. 01.234.567-8).

 

VAT rates

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

 

VAT payments and returns

All businesses with Chilean VAT number must submit periodic VAT reports.

VAT Returns frequency

For all companies that operate in Chile, VAT returns must be submitted on a monthly basis.

Penalties in case of late filings or misdeclarations

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:

  • a fixed amount of penalty
  • a percentage of the corresponding tax due (e.g. a rate ranging from 5 to 300 percent of the tax due)
  • the temporary closing of the business
  • imprisonment

Invoice requirements

Invoices issued in Chile must contain at least the following:

  • date of invoice issuance
  • a unique, sequential number of the invoice
  • supplier / issuer data (company name, address, VAT number)
  • customer data (address, VAT number and other data if available)
  • full description of goods and services provided (quantity and type)
  • net price per unit (excl. VAT)
  • rate and amount of VAT applicable for the category of goods and services provided
  • total amount of VAT
  • date of delivery / dispatch
  • type of the payment
  • the invoice total (incl. VAT)

E-Invoicing

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.

How to apply for the issuing of electronic invoices?
  1. Business entities must first apply for the Folio Authorization Code (Código de Asignación de Folios – CAF) on the website of the Chilean Tax Authority (SII)
  2. Once approved, SII will provide the business entity with a CAF digital signature for issuing DTE invoices
  3. The CAF number provided by SII is not permanent. The SII issues the CAF once a year.

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 Servicio de Impuestos Internos (SII)

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.

How real-time reporting in Chile works?
  1. The entrepreneur sends an electronically signed XML data message about the transaction to the Chilean Tax Authority (SII)
  2. Chilean Tax Authority (SII) checks the content of the XML message, add digital stamp and sends back confirmation to the entrepreneur
  3. Once confirmed by SII, the invoice can be issued to the customer Who is affected by this obligation? All taxable persons in Chile are affected by this obligation.

Turnkey invoice compliance.

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