This guide provides an overview of VAT in Chile, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Chile.
marks the year Chile became one of the first Latin American countries to adopt VAT.
Doing business in Chile? You’ll need to play by the Chilean Tax Code rules.
The VAT law in Chile contains no provisions for voluntary VAT registration, as there is no registration threshold.
Chile requires foreign digital service providers to register for VAT if they supply digital services to consumers in Chile.
Only VAT-registered businesses in Chile that are engaged in taxable activities can reclaim VAT. Businesses must have valid tax invoices and ensure the goods/services purchased are for business purposes.
Businesses must provide valid tax invoices (boletas or facturas) that show the VAT paid on purchases. These invoices must be issued by registered suppliers and meet all Chilean tax requirements. Additional documentation may include proof of payment and the commercial purpose of the transaction.
VAT returns in Chile are due on a monthly basis. Businesses must submit their VAT declaration (Form 29) by the 12th day of the month following the taxable period.
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