Chile - B2C Sellers and marketplaces to charge VAT in checkout on low-value consignments of goods

29 November 2024

At the end of October, the Chilean Congress enacted the Tax Compliance Bill  (Proyecto de Ley de Cumplimiento de las Obligaciones Tributarias), introducing VAT on low-value consignments of goods being imported by consumers.

Currently, an Import VAT exemption threshold of $41 (approx. £32) allows consumers to purchase goods from non-resident companies free of VAT up to this value. However, this threshold will now be removed. Instead, non-resident providers will be obliged to VAT register and charge VAT to consumers at the current rate of 19% on consignments valued at or below $500 (approx. £395).

The Chilean authorities have confirmed that:

• There will be no VAT registration threshold for non-resident sellers.
• A simplified registration scheme will be implemented for affected businesses.
• Where suppliers fail to register, payment service providers (e.g., credit card companies) will be required to withhold VAT on payments made by consumers.

This measure aligns with similar VAT rules introduced for digital supplies.