19% Withholding VAT for non-resident sellers and digital platforms Jun 2026
- Shift of VAT liability to payment providers from 1 June 2026
- Targeted enforcement via published seller list
From 1 June 2026, Resolution Ex. SII No. 05 (14 January 2026), the Chilean Internal Revenue Service (SII) introduces a “change of subject” mechanism that transfers the obligation to collect VAT from non-resident sellers to Chilean financial institutions acting as withholding agents.
The regime targets remote sales of goods located abroad and sold to Chilean consumers, particularly where payments are made via credit, debit, prepaid, or similar electronic payment methods.
SII has increasing been focusing on non-resident e-commerce players for VAT obligations: Deemed supplier marketplace in October 2025 and B2C reporting obligations January 2026.
Payment providers withhold VAT
Banks, card issuers, savings and credit cooperatives, and other non-bank payment providers must verify whether a foreign seller appears on the SII’s published list of non-compliant digital VAT taxpayers. If listed, VAT must be added to the transaction at the point of payment, charged in the transaction currency, converted into Chilean pesos using the Central Bank exchange rate, and declared monthly via Form 29.
Withholding does not apply where the purchaser proves Chilean VAT registration. Financial institutions must also maintain detailed transaction records and submit semiannual reports, with penalties for non-compliance. The first official list will be published on 15 June 2026 (effective 1 July–31 December 2026), and the first report is due by the last business day of February 2027.
Jun 2022: When foreign provider is not VAT registered, credit or debit card issuers must withhold VAT
From 1 August 2022, Chilian issuers of credit or debit cards must monitor payments for B2C digital services to non-resident providers. Where the provider is not VAT registered in Chile, they must withhold 12% VAT 19%
