Chile makes sweeping changes to VAT rules on international purchases

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Chile makes sweeping changes to VAT rules on international purchases

Sponsored by

sponsored-firms-pwc.png
Busy street in Santiago, Chile

Sandra Benedetto and Nicolás Foppiano of PwC Chile explain the country’s new VAT rules for international purchases, eliminating the $41 exemption and requiring foreign platforms to collect VAT on cross-border sales

On October 25 2025, new regulations that substantially modify the tax treatment of international purchases in Chile entered into force. This measure, part of the Tax Compliance Law (Ley de Cumplimiento Tributario), aims to strengthen tax revenue and correct distortions in cross-border e-commerce, with an estimated additional collection close to $100 million.

Key updates

The most relevant change is the elimination of the VAT exemption for imports under $41. From now on, all purchases of physical goods from abroad will be taxed at 19% VAT, regardless of their value. Furthermore, a new collection mechanism is established for purchases up to $500, where foreign platforms such as AliExpress, Shein, or Amazon will be responsible for applying the VAT directly at the time of the transaction. This system replicates the model already in force for digital services such as Netflix, YouTube, or Spotify, under which the foreign platform will be required to register in a so-called VAT Simplified Regime and declare and pay the VAT on a monthly or quarterly basis.

For purchases exceeding $500, or those made by VAT payers, the general regime is maintained; that is, the buyer must declare and pay the corresponding taxes before customs (Servicio Nacional de Aduanas).

Impact of the changes

For Chilean consumers, the impact was immediate. Purchases on foreign platforms now include VAT, but if the seller is registered on the Chilean Internal Revenue Service (SII) portal, the purchase will be exempt from the 6% customs duty (arancel aduanero) and will benefit from an expedited entry process. In contrast, if the seller is not registered, the package will go through the regular customs process, involving greater delays and the application of both VAT and customs duties.

The updated rules aim to create a fair system by applying the same standards to local and foreign sellers. They address previous issues caused by the $41 exemption and require foreign sellers to charge VAT and follow all relevant regulations.

It will be interesting to analyse how the application of the new regulations impacts foreign purchases. This will be especially relevant for smaller foreign sellers, which may face difficulties adapting to the new requirements. In contrast, bigger companies with greater capacity that are duly registered on the SII portal will not only be able to introduce their products into the country more agilely but will also benefit from the customs duty exemption.

Finally, for registered companies, the first period for declaring and paying VAT begins in January 2026, covering all sales generated from October 25 to December 31. Therefore, it is of the utmost importance that foreign taxpayers that have conducted sales to Chile review their situation and prepare accordingly.

more across site & shared bottom lb ros

More from across our site

Sara Morgan is due to join Joseph Hage Aaronson & Bremen as a partner in London, ITR understands
The newly combined tax team has already worked on thousands of joint client matters, leaders from McDermott Will & Schulte tell ITR
As AI becomes increasingly intuitive and idiot-proof, its tax applicability is becoming impossible to overstate
New data on public CbCR showed uneven adoption, as Singapore advanced pillar two compliance and firms expanded their tax capabilities
Nearly two years after its publication, the Corporate Tax Roadmap is reshaping the UK’s TP framework through incremental reforms focused on scope, transparency and earlier HMRC intervention
With a stark divergence between MNEs that prepared early and those rushing to catch up, advisers must remain agile with all manner of compliance risks
The EU agreed new cooperative and investigative measures to tackle VAT fraud, while Hungary faced legal action and Lavez Coutinho expanded its indirect tax team
The arrival of a team from Brazilian rival Costa Tavares Paes Advogados brings SiqueiraCastro’s tax headcount to seven partners and 30 associates
CSR initiatives can sometimes venture into virtue signalling, but Ryan’s tax literacy event for schoolchildren was a genuine and necessary endeavour
Grant Thornton advanced plans to integrate its Australian firm into its US arm, as tax developments spanned law firm hires, aviation levies and digital services taxes
Gift this article