Platform operators face VAT deemed supplier and reporting obligations from January 2026
A bill (Proyecto de Ley de Cumplimiento de las Obligaciones Tributarias) to impose new VAT deemed supplier and reporting obligations on digital platform operators has been based by the Chilean Congress. It is likely the bill will pass into law before year end, and then becomes effective 12 months following gazetting. This implies a likely 1 January 2026 implementation.
B2C Deemed supplier obligations
The bill will extend the deemed supplier marketplaces. For VAT purposes, platform operators will become the party responsible for VAT collections on behalf of their third-party sellers for goods or services. However, sites providing mere payment or advertising services will remain outside the scope of the new law.
B2B transactions are excluded; the reverse charge may be applied.
Platform operators reporting requirements
The bill obliges platforms to check the VAT status of its third-party sellers to ensure compliance. Each year, the platform must report sellers’ identity and transactions on the platform. This is similar to global requirements such as the EU’s DAC7 marketplace obligations introduced in 2023.
VAT on low-value consignments
Separately, the bill also imposes VAT on low-value consignments of goods being imported directly to consumers has been approved by Congress. Any consignment at or below US$500 will attract VAT at the online checkout, and the sellers will have to register for VAT and submit returns and remittances. This will be through a simplified registration scheme with no registration threshold. In the case of failure to register, payment service providers (e.g. credit cards) would have to withhold the VAT.
Similar measures already apply to Chile VAT on digital supplies.
Global deemed supplier obligations for marketplaces
In several countries, digital platforms (such as e-commerce marketplaces) are required to take on the deemed supplier VAT obligations of their sellers. These obligations typically arise when the platforms facilitate the sale of goods or services by third-party sellers, making the platform responsible for collecting and remitting VAT. Here are some examples:
- European Union (EU):
- Platforms are deemed suppliers for VAT on the sale of goods valued below €150 imported from outside the EU.
- For intra-EU distance sales of goods, platforms are liable when the seller is a non-EU entity.
- United Kingdom:
- Since Brexit, platforms are responsible for VAT on sales of goods from outside the UK valued at £135 or less.
- They also take on VAT obligations for UK domestic sales by non-UK sellers.
- Australia:
- Online marketplaces must collect GST (Goods and Services Tax) on sales of low-value goods imported by consumers (goods valued under AUD 1,000).
- GST obligations extend to digital services and electronic products sold to Australian consumers.
- New Zealand:
- Marketplaces are responsible for collecting GST on imported goods below NZD 1,000.
- They must also collect GST on remote services and digital products provided to New Zealand customers.
- Norway:
- Marketplaces are required to handle VAT on low-value goods (under NOK 3,000) imported from non-Norwegian sellers.
These rules aim to simplify VAT compliance and reduce evasion on cross-border transactions.
