Chile makes sweeping changes to VAT rules on international purchases

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Chile makes sweeping changes to VAT rules on international purchases

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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.

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