Chile VAT (IVA) Guide – Rates, Registration, Invoices & Compliance

VAT in Chile

In Chile, the Value Added Tax is known as Impuesto al Valor Agregado (IVA). It’s a general tax on consumption applied to sales and services. Administered by the Servicio de Impuestos Internos (SII), the VAT system is a cornerstone of Chile's taxation framework, impacting both domestic and international businesses.

📊 Chile VAT (IVA) Rates

As of 2025, the standard VAT rate in Chile is:

🔹 Standard Rate: 19%

Applies to most goods and services sold or provided within Chile.

There are no reduced VAT rates in Chile. However, some goods and services may be exempt or zero-rated under specific conditions.

🏢 VAT Registration in Chile

📍 Mandatory Registration:

Businesses that engage in commercial, industrial, professional, or service activities subject to VAT must register with the SII. There is no minimum turnover threshold - any business carrying out taxable operations must register.

🌍 Foreign Companies:

Non-resident businesses providing digital or electronic services to Chilean consumers are required to register and charge VAT, even without a physical presence in Chile.

🧾 VAT Number Format

Businesses are assigned a RUT (Rol Único Tributario), which acts as the tax identification number.

Format: 99.999.999-K

Example: 76.123.456-7

💻 VAT on Digital Services

From June 2020, Chile applies a 19% VAT on digital services provided by foreign suppliers to users in Chile. Affected services include:

• Streaming (e.g., Netflix, Spotify)
• Software and mobile apps
• Cloud storage
• Digital advertising (e.g., Google Ads, Facebook)

VAT may be withheld by credit card providers or paid directly by the supplier via SII’s simplified registration system.

🧮 VAT Calculation Example

• Selling price of a laptop: CLP 800,000
• VAT @ 19% = CLP 152,000

Total Price = CLP 952,000

🧾 Invoicing in Chile

Businesses must issue electronic tax documents (DTE – Documentos Tributarios Electrónicos), such as:

• Factura Electrónica (Electronic Invoice)
• Boleta Electrónica (Electronic Receipt)

Key invoice elements:

• Supplier and buyer RUT
• Product/service description
• Net amount
• VAT amount
• Total payable
• Issue date and sequential folio number
• Digital signature

Electronic invoicing is mandatory and managed through the SII platform or authorized third-party software.

📅 Filing VAT Returns

• Frequency: Monthly
• Due Date: By the 12th of the following month
• Platform: Returns and payments are submitted via www.sii.cl

Late filing may result in penalties and interest.

🌐 VAT on Imports and Exports

📥 Imports:

Subject to 19% VAT collected at customs. Businesses can reclaim it as input tax.

📤 Exports:

Exports are zero-rated, allowing exporters to claim back input VAT on goods and services used in export production.

🚫 VAT Exemptions

Certain operations are exempt from VAT, including:

• Educational services
• Public transportation
• Specific health services
• Sale of certain real estate
• Financial services

Note: Exempt businesses cannot deduct input VAT.

💡 VAT Refunds & Credits

Registered businesses can deduct input VAT on purchases directly related to taxable sales. Excess input tax is usually carried forward, but refunds may be allowed in export-related cases.

✅ Compliance Tips

• 🧾 Always issue proper electronic tax documents (DTE)
• 🖥 Use SII-certified invoicing platforms
• 📥 Keep accurate records of purchases and sales
• 🧾 Separate taxable, exempt, and export sales
• 🌍 Register for digital service VAT if a foreign provider
• 🗓 File monthly VAT returns on time via SII portal

Chile’s VAT (IVA) system is straightforward but requires consistent electronic reporting and compliance. Whether you're a local business or a foreign digital service provider, understanding your tax obligations ensures smooth operation in Chile's growing economy.

👉 Try the Chile VAT Calculator 🇨🇱 on GSTCal.org to simplify your tax calculations today!