Chile’s tax authority (SII) has released the draft Circular Letter 300079.2024GE, on 3 December 2024, clarifying VAT sourcing rules for remote services and new VAT obligations for remote sellers of goods to consumers.
This follows after Chile passed the Tax Compliance Bill, adding new reporting requirements for digital platform operators, clarifying their VAT obligations, and introducing VAT collection rules for remote sellers to Chilean consumers.
According to the draft circular “remote” has been defined as services provided from a distance, including digital and other methods like advertising or intermediary services. Any service provided by businesses located outside of Chile and used in Chile qualifies as “remote.” The draft circular confirms that services unused or provided outside Chile will not be taxed.
Starting 1 November 2024, providers of remote services to individuals in Chile must register, collect, and remit VAT through a simplified system.
Under the Tax Compliance Bill, foreign businesses selling goods to Chilean customers that are valued under USD 500 (or local equivalent) must register under the simplified tax system. From 24 October 2025, these sellers and platforms must register, collect, and remit VAT through the simplified compliance process.
