Chile — Tax: Vat

Why this matters

VAT can have a significant impact on personal and business expenses in Chile, making it essential for relocating individuals to understand the system to avoid any potential tax liabilities.

Key facts

• The IVA rate is 19% under article 14 of the VAT law.
• Law 21.713 extended the 19% VAT to all taxed services provided remotely by taxpayers without domicile or residence in Chile.
• It also introduced a simplified regime with a 19% rate on payments received.
• Exemptions were not covered here.

Steps

1. Determining VAT Liability — Relocating individuals will need to register with the Servicio de Impuestos Internos (SII) to determine their VAT liability. The SII will assess whether the individual is subject to VAT based on their income and business activities.
2. VAT Registration — If VAT registration is required, the individual will need to obtain a VAT number from the SII. This number must be displayed on all invoices and receipts.