On 5 February 2024, Chile’s tax authority (Servicio de Impuestos Internos – SII), in a release, declared that its VAT collections from registered digital service suppliers have exceeded USD 1 billion as of December 2023. In June 2020, Chile introduced regulations ensuring the collection of Value Added Tax (VAT) from foreign digital service providers.
As of now, the tax authority reported that 426 foreign digital service suppliers have registered. The SII has identified 92 foreign digital service suppliers who have not registered and are under monitoring to determine if their transactions should be subject to VAT.
The Resolution No. 46 of 2022 imposes VAT withholding requirements to collect VAT on payments made to foreign digital service providers who must register and be subject to VAT payments but are yet to oblige. The SII publishes a list of suppliers subject to withholding, which is updated on 15 December each year. The recent list was introduced in Resolution EX. SII No. 143 of 15 December 2023 includes 29 businesses and platforms.
