BDO Indirect Tax News

Guidance issued by Chile’s tax authorities on 30 April 2025 (Circular No. 39) addresses 2024 amendments to the VAT law. These changes, which take effect on 25 October 2025, aim to modernise the VAT rules for cross-border e-commerce transactions, particularly in business-to-consumer (B2C) sales of low-value goods (i.e., goods valued under USD 500).

Key Changes

The revised VAT regime for low-value goods sold remotely to Chilean consumers by nonresident sellers and digital platforms includes the following measures: 

• Digital platforms as VAT taxpayers: Digital intermediation platforms are deemed to be the sellers or service providers for VAT purposes when transactions are carried out through them. Platforms are responsible for charging, declaring and paying VAT on the underlying transaction, regardless of whether they are domiciled in Chile or abroad. Exceptions apply where the seller or buyer is already a VAT taxpayer in Chile or where the platform only provides advertising or payment processing services.
• Remote sales of low-value goods: Goods located abroad will be deemed to be located in Chile for VAT purposes when:
  • They are sold remotely by a nonresident seller;
  • The purchaser is a final consumer in Chile; and
  • The total value of the goods, including shipping and related charges, does not exceed USD 500.

Such transactions will be subject to VAT at the time of sale, shifting the taxable event away from importation.

• New import VAT exemption: To avoid double taxation, imported low-value goods are exempt from VAT and customs duties if VAT was already charged at the point of sale. This ensures that consumers bear VAT only once, either at the time of sale or at import.
• Simplified VAT regime for nonresidents: Nonresident sellers and platforms must report and pay VAT under the simplified digital VAT regime, which operates directly through the Chilean tax authorities’ online portal. Nonresident sellers and platforms may register under the simplified VAT regime in advance—via the tax authorities’ website—to ensure compliance.
• Resident platforms: Resident platforms are subject to the general VAT rules.

Impact for Cross-Border Businesses

These reforms align Chile’s VAT system with OECD recommendations on taxation of the digital economy and bring it closer to international best practices observed in the EU and other jurisdictions. For businesses operating e-commerce platforms or selling directly into Chile, the new rules mean:

• A clear shift of compliance responsibility to digital platforms;
• Simplified processes for consumers, who will now pay VAT upfront at the time of purchase rather than upon import; and
• Reduced risk of double taxation through a new import exemption mechanism.

Cristian Vargas
BDO in Chile