Frequently Asked Questions

1.- Digital VAT and the Simplified Tax Regime

Law No. 21,210, published in the Official Gazette on February 24, 2020, established the application of the Value Added Tax (VAT), with a rate of 19%, to four types of remote services provided by taxpayers without domicile or residence in Chile.

On the other hand, Law No. 21,713, published in the Official Gazette on October 24, 2024, extended the application of the Value Added Tax (VAT), with a rate of 19%, to all taxed services remotely provided by taxpayers without domicile or residence in Chile.

Therefore, the services subject to VAT are the following:

• Intermediation of services rendered in Chile, wathever its nature, or of sales made in Chile or abroad provided that the latter give rise to an import.
• Provision or delivery of digital entertainment contents such as videos, music, games or analogues, through download, streaming, or another technology, including texts.
• The provision of software, storage, platforms or computing infraestructure.
• Advertising, regardless of the via through which it is delivered, materialized or executed.
• Any other VAT taxable service not indicated above.

The providers of these services will be subject to a Simplified Tax Regime.

1.- What are the essential elements of this Simplified Tax Regime?

• Taxpayers will be subject to a simplified tax regime. (Article 35 A).
• The SII Commissioner may totally or partially exempt taxpayers from this regime from certain obligations through general regulations or may substitute them for other procedures that constitute a simplified procedure. (Article 35 B).
• Taxpayers subject to this regime will not be entitled to a tax credit and will be released from the obligation to issue tax documents for their operations. (Article 35 C).
• Taxpayers will be subject to a tax rate of 19% over the payments received for the services provided. (Article 35 D).
• Taxpayers subject to this regime must declare in a simplified form and pay the taxes accrued in a tax period, until the 20th of the month following that in which the tax is accrued (Article 35 E).
• The SII Commissioner, through a rule of general application, will establish the necessary procedures for the determination and payment of the tax in foreign currency.

  Likewise, the SII Commissioner may authorize that the determination and payment of the tax be made in national currency, when the operation is carried out in foreign currency. (Article 35 F).

• If, as a result of discounts, cancellations, termination or resolution of services, the taxpayer had returned the respective tax to the consumer, he may deduct said amount from the tax that he must pay (Article 35 G).
• The Servicio de Impuestos Internos (SII) will be able to use all the technological control means at its disposal to verify compliance with tax obligations. (Article 35 H).
• Likewise, the Servicio de Impuestos Internos (SII) may request taxpayers subject to this tax the information they have available on the identification of the service providers with respect to those who mediate and the amounts that are paid or made available to said providers. (Article 35 I).