B2C Sellers and marketplaces to charge VAT in checkout on low-value consignments of goods
Chile’s has enacted (Tax Compliance Bill) the imposition VAT on low-value consignments of goods being imported directly to consumers has been approved by Congress. Following the Constitutional Court giving it a review. Currently, consignments not exceeding US$41 may be imported VAT free.
The Act also imposes digital platform VAT reporting requirements.
The likely implementation is January 2026.
Simplified consignment VAT reporting
To help with the new compliance objectives, 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.
The measure will extend to deemed supplier marketplaces. For VAT purposes, they will become the party responsible for VAT collections on behalf of their third-party sellers.
