Chile Strengthens Digital VAT Enforcement for Foreign Platforms

Chile’s Internal Revenue Service has strengthened Digital VAT compliance for foreign platforms. Following the announcement of new enforcement measures, 25 platforms registered under the simplified VAT regime. Registered providers will be monitored by comparing their VAT returns with payment data, while payment processors may be required to withhold and remit 19% VAT on transactions involving unregistered platforms.

Compliance Measures for Unregistered Platforms

Exempt Resolution No. 94 of July 15, 2026, identifies unregistered platforms that will be subject to the change-of-taxpayer mechanism.

Under this system, the relevant payment processor will be responsible for:

• Withholding 19% VAT from each transaction; and
• Remitting the withheld VAT to the SII on a monthly basis.

The measure is based on transaction data received from banking institutions, non-banking entities and payment processors.

Verification of Registered Platforms

The SII will review the information submitted during the registration process and verify whether the VAT declarations and payments made by registered platforms correspond to the transaction data reported by payment service providers.

This control mechanism builds on the experience gained since VAT on foreign digital services was introduced in Chile in 2021. Information from debit, credit and prepaid card transactions allows the SII to identify foreign platforms operating in the country and assess whether they have fulfilled their registration and VAT payment obligations.

The new approach therefore combines two forms of enforcement: registered platforms will be monitored through automated data checks, while VAT on transactions involving unregistered providers may be collected directly through payment processors.