Chile: SII Mandates Third-Party Seller Reporting for Digital Marketplaces

Chilean Tax Authority (SII) introduced new reporting obligations for digital platforms and payment providers starting October 1, 2025, with additional requirements from January 1, 2026. These rules enhance tax oversight and VAT compliance in the digital economy.

The Chilean Tax Authority (SII) issued Circular 38/2025, introducing new reporting obligations for digital platforms and electronic payment providers starting October 1, 2025, with additional requirements from January 1, 2026. These rules enhance tax oversight and VAT compliance for digital intermediation services, aligning with global trends.

Important Obligations:

Initial Compliance Verification (Oct 1, 2025):

Platforms must verify users’ (sellers/service providers) SII registration before offering services.

Sellers claiming exemptions (e.g., simplified regime) must declare this.

Platforms must annually report to SII:

• List of users.
• Total transactions (number and value).
• Details of users not registered with SII, including transaction data.

Ongoing Verification (Jan 1, 2026):

Platforms and payment providers must verify users’ tax compliance every six months.

VAT Withholding for Non-Compliant Sellers:

Platforms or payment providers must withhold VAT for non-compliant sellers at a rate to be specified (not exceeding standard VAT).

Only payment providers withhold VAT when both are involved.

Further SII guidance on technical requirements is expected. These rules promote transparency and tax compliance in Chile’s digital and gig economy.