The Chilean Congress has passed the Tax Compliance Bill (Proyecto de Ley de Cumplimiento de las Obligaciones Tributarias), bringing new reporting and VAT obligations for platform operators and remote sellers. These amendments will require platform operators to verify and report on sellers, clarify VAT obligations for digital platforms, and extend VAT collection requirements to non-resident sellers providing goods to consumers in Chile.
New Reporting Requirements for Platform Operators
Under the bill, operators of digital platforms must ensure that sellers on their platforms are registered with the Chilean tax authority, except those explicitly exempted. Additionally, platform operators will need to provide annual reports to the tax authority, detailing registered entities, exempt entities, the number of transactions, and total values.
Unlike the OECD marketplace reporting standards, the bill does not specify which types of platform operators or transactions fall under these reporting obligations. Further clarification will be provided by the tax authority through future regulations 🔍.
Clarifying VAT Sourcing Rules for Remote Services
Since June 2020, foreign digital service providers have been required to charge and remit VAT on digital services provided to Chilean consumers, and this base was expanded in 2023 to include most services. However, sourcing rules for remote services remained unclear. The bill now provides sourcing guidelines for remote services, establishing a presumption of Chilean sourcing if two out of the following four conditions are met: Chilean SIM card, IP address, bank information, or consumer’s declared Chilean address.
New VAT Obligations for Digital Platforms
The bill clarifies that digital platform operators are considered taxpayers for VAT purposes on transactions they facilitate, treating them as if they were the seller or service provider. This requirement does not apply to transactions involving VAT-registered taxpayers. A "digital intermediation platform" is defined as an internet interface that facilitates third-party sales or services, excluding platforms focused solely on advertising or payment processing. If multiple platforms are involved in facilitating a transaction, the platform handling the payment is deemed the taxpayer.
It remains uncertain whether VAT registration requirements will apply only to Chilean entities 🇨🇱 or if non-resident sellers registered for VAT in Chile will also qualify.
New VAT Collection Requirement for Remote Sellers of Low-Value Goods
Non-resident sellers providing goods directly to Chilean consumers will be required to collect VAT on goods under certain conditions This means VAT will be collected at the point of sale rather than upon importation.
The VAT obligations apply specifically to B2C (business-to-consumer) sales within Chile.
For transactions facilitated by digital platforms, VAT responsibility shifts to the platform itself, in line with the definition outlined above.
The bill extends Chile's simplified VAT regime, currently applicable to remote service providers, to cover remote sellers of goods as well. Notably, the regime does not require a minimum registration threshold for VAT compliance.
No specific invoicing requirements are imposed on remote sellers of goods under the bill. General penalties, as outlined in Chile’s tax code, will apply for non-compliance.