The measure seeks to facilitate their incorporation into the special tax regime that allows open-air market vendors to take advantage of a substitute tax of 1.5% on the total amount of each sale, instead of the usual 19% VAT.
Chile’s tax authority (SII) announced, on 12 June 2026, that it has extended the time for open-air market vendors to secure the permits they need to join a new simplified tax scheme.
The move addresses implementation delays and gives informal traders a clearer pathway to formalisation, while responding to concerns raised by vendor associations and local councils.
Extension and requirements
On 11 June 2026, the Internal Revenue Service (SII) issued Resolution No. 79, extending the deadline to 31 December 2026. Until that date, municipalities can grant or renew market permits without demanding proof that a vendor has officially started trading. The change targets Law No. 21,745, which established the special regime for open-air markets, and removes a key documentation barrier that had slowed adoption among street-level traders.
SII Director said the extension aims to “simplify the process for all stakeholders,” allowing vendors without formal business commencement records to obtain municipal licenses—a prerequisite for entering the tax scheme.
The tax benefit
The special regime, in place since January 2026, offers market vendors a 1.5% substitute tax on sales instead of the standard 19% VAT. Registered traders don’t file VAT returns or maintain full accounting records—the tax is collected directly by SII-approved payment processors. Nearly 21,372 vendors have registered nationwide so far.
What vendors must do?
To qualify, sellers must hold a municipal permit (to be reported by the municipality to the SII), declare the start of business to the tax authority, process all payments electronically through SII-authorised channels, and register on the SII’s Open Markets Registry.
The SII has run regional training and outreach activities to support vendors, with dedicated resources available on its website covering requirements, approved payment methods, and frequently asked questions.
