Chile’s tax authority has updated the list of foreign digital service providers subject to VAT withholding for 2026, requiring payment intermediaries to charge and remit VAT on transactions with local consumers for non-registered providers.
Chile’s tax authority (SII) has issued Resolution No. 181 of 15 December 2025, which formalises the list of foreign digital service providers (DSPs) subject to value added tax (VAT) withholding for the upcoming calendar year.
Chile has implemented a framework to ensure VAT collection on digital services provided by foreign companies. Initially introduced on 1 June 2020, the rules required foreign providers to collect and remit VAT under a simplified regime when their customers in Chile were not taxable persons.
Additional measures, effective from 1 August 2022, shifted the responsibility for VAT withholding to payment intermediaries such as credit and debit card issuers when foreign providers failed to register under the simplified regime. Beginning January 2026, these financial institutions are required to charge and remit VAT directly on payments made by local consumers to the listed foreign digital service providers.
Each year, on 15 December, a list of non-compliant foreign digital service providers is updated for the following year.
For 2026, this roster, known as the “Contribuyentes IVA SD Afectos a Cambio de Sujeto,” includes 25 foreign providers and will be effective from 1 January to 31 December 2026.
During this period, payment card issuers must apply VAT to transactions by cardholders who are not registered for VAT when purchasing services from the listed entities.
