VAT is declared exclusively online through the Digital Services VAT Portal that the Internal Revenue Service has enabled on its website (sii.cl).
The declaration must be made using the VAT on Digital Services form (F129). For declarations in foreign currency, payments must be made using a SWIFT transfer (international interbank transfer).
To fulfill the obligation, it is not enough to just send the tax return. The tax must be paid within the legal term.
The taxable base of the tax payable corresponds to the total amount of payments received, whatever its nature, for the provision in Chile of the services included in the VAT Law.
The nature of the payment will depend on the type of service provided. For instance, in the intermediation of services, the payment received would be the commission or other income received by the taxpayer. On the contrary, if it is the delivery of digital content such as videos, music, games or others, the payment would correspond to the value paid by the consumer, which could correspond to a price or rate.
In this field, the amounts that resulted in case of discounts, cancellation or termination of services must be filled. These amounts are deducted from the tax to pay, not from the tax base.
As an example: a consumer claims against his streaming service provider for services charged, but not received, in the amount of US $ 20 (net of tax). The service provider returns the $ 20 to the consumer. Therefore, the amount to be recorded by the provider in the Rebates field will be US $ 3.8 (US $ 20 * 19%).
The tax to pay is calculated by applying a 19% rate to the tax base. This calculation is done automatically by the system on the F129 form, when making a return.
The filing and payment terms of the F129 form depend on the Periodicity that the taxpayer chooses at the time of obtaining its User Number in the Portal (Simplified Tax Regime Registration Form). This periodicity indicates the tax period to declare, where “tax period” is understood to be a period of one or three months in a row, at the taxpayer's choice.
If a monthly periodicity is chosen, filing and payment of the tax must be made during the first twenty days of the month following the tax period that is filed. For instance, if the remote services provided during March of a given year were being declared, the term for filing and paying is from the first to the twentieth day of April of the same year.
On the other hand, if quarterly periodicity is chosen, filing and payment of the tax must be made during the first twenty days of the month following the tax period that is declared. For example, if the remote services provided during April, May and June of a given year were being declared, the term to file and pay is from the first to the twentieth day of July of the same year.
It is not possible to resume the entry of information in a form 129 , since the entered data will only be available in the case that the return had been sent.
It's not mandatory. Form 129 must be declared only if in the tax period in question (one or three months depending on the option chosen by the taxpayer) there is income from sales or services rendered in Chilean territory.
The system automatically displays a filing certificate when it is filed. Now, if you want to obtain a certificate or a copy of the filing of Form 129, you must enter the Portal “Check Status” menu. In this menu it is possible to consult the current status of tax returns, by tax period, and obtain filing certificates of Form 129 for the period selected.
It is possible to correct the tax return whenever the amount of tax to pay increases. It is important to consider that if the correction is carried out after the deadline, the corresponding fines and interests will proceed.
If there is a VAT remmant of a tax return from a previous period, this amount will be automatically displayed in “VAT Remnants from previous periods " (code 201) of the Form 129 to file.
For declarations in foreign currency, payment of the filing of Form 129 is made through a SWIFT transfer using the data that is automatically displayed when sending the tax return.. Every time a Form 129 is sent, the data will be displayed to make the payment. It is very important to correctly complete the information required to successfully carry out the SWIFT transfer, since otherwise the payment cannot be identified and the filed tax period will be recorded as debt.
Transfers via SWIFT ("Society for Worldwide Interbank Financial Telecommunication"), correspond to an international interbank transfer. These transfers are identified by a SWIFT code, also called the BIC ("Bank Identifier Code"), consisting of an 8 or 11 digit alphanumeric series that is used to identify the receiving bank when making an international transfer.
For declarations in Chilean pesos, the tax payment is made online after have submitted form 129.
In code 70, the User Number must be registered, followed by the name of the form, tax period and Folio. For example:
556545253-F129-202006-853201533. This identifier is automatically shown in the informative window that is displayed once the declaration has been sent in order to proceed with the payment via SWIFT transfer.
In code 71-A, the word “OUR” (in capital letters) must be registered, which indicates that the Bank will pay in full to the General Treasury of the Republic of Chile.
It is important that this information is recorded every time a tax return is filed, otherwise it will not be possible to correctly identify the issuer of the payment and the filed period will be recorded as debt.
The only currencies authorized to pay the tax are the United States of America Dollar, the Euro and Chilean pesos.
The choice of currency is made at the time of obtaining the User Number through the Registration Form. It is important to consider that once the payment currency has been selected, it cannot be modified later.
In the Check Status option you can review the status of the tax returns (Form 129) by tax period.
| Status | Meaning |
|---|---|
| No current Tax Return | No return has been submitted for this tax period. |
| Tax Return in force without payment | There is a tax return in force in the period consulted, but there is no payment associated with this return. |
| Tax Return in force with partial payment | There is a tax return in force in the period consulted, but there is no full payment associated with this return. |
| Tax Return in force with full payment | There is a tax return in force in the period consulted, with full payment associated with this return. |
The Check Status option shows, additionally, the following options:
* Debt information appears only if there is debt.
** The information to make the Swift transfer appears only if the tax return payment has not been received or was received incompletely.
Taxpayers who, due to errors in the determination of the tax base or due to improper deductions, submit in Form 129 a lower tax amount than the one that effectively corresponds, may make a new return, correcting the previously declared and paying the corresponding tax differential. To do this, taxpayers must select the Correct tax return option available in the main menu of the Portal.
It is important to note that you cannot correct a tax return for an amount less than previously declared. For more information, inquiries can be sent to IVASD.Chile@sii.cl.
Debt can be generated in the following situations:
The legal term to which the preceding numerals refer, corresponds to the 20th of the month following that in which the tax is accrued.
It can be done in the same SWIFT transfer of your declaration of the Form 129. For this, the information of the balance due will appear in the code [300] of the form and will be added to the total amount to be paid.
When presenting debt, the information data to carry out the SWIFT transfer will show a breakdown of the amount to be paid, differentiating the tax payable for the period and the total balance owed.
It can be done in the same SWIFT transfer of your declaration of the Form 129. For this, the information of the balance due will appear in the code [300] of the form and will be added to the total amount to be paid.
When presenting debt, the information data to carry out the SWIFT transfer will show a breakdown of the amount to be paid, differentiating the tax payable for the period and the total balance owed.