Chile – VAT Withholding Regime for Non-Resident Remote Sellers and Digital Platforms 

On January 14, 2026, Chile’s Tax Administration( Internal Revenue Service) adopted Resolution No. 05, which introduces a new VAT withholding regime for non-resident online sellers and e-commerce marketplaces that aren’t registered for VAT under the simplified tax framework. 

Timeline 

The Resolution enters into force on June 1, 2026. 

Designated VAT withholding agents must submit a mandatory information report by the end of February 2027. 

VAT Withholding Regime 

Resolution introduces a new VAT collection mechanism that will unquestionably increase tax revenue for the tax authorities. The VAT withholding regime, specifically designed for remote sales of goods, applies when the following conditions are met: 

The supplier or digital intermediation platform is a foreign person without residence or domicile in Chile who should comply with the Simplified Taxation Regime established for non-resident sellers of goods or services, but fails to do so

• The purchaser is a natural or legal person that is not a taxpayer with domicile or residence in Chile
• The supplier or digital intermediation platform is included in the list “Digital VAT Taxpayers Subject to Change of Taxpayer”(list)
• When these conditions are met, the local payment service provider(bank, banking support entities, issuers of credit or debit cards, or other payment instruments), shall act as VAT withholding agent on the payments made by local buyers(who aren’t taxpayers) to remote sellers of goods or digital platform operators who intermediate in those supplies. 

The VAT withholding agent is mandated to charge, collect, declare, and remit VAT in accordance with the Internal Revenue Service’s VAT rules for remote supplies of goods by non-resident sellers. VAT withholding shall be applied to each sale of the cardholder to remote sellers on the list. 

VAT withholding should be made in the same currency as the one indicated on the payment receipt. The VAT withholding agent is obliged to verify whether the remote seller is on the list. The surcharge should be processed only for transactions in which the seller is listed on the list. 

In the case of B2B transactions, where the local taxable person acquires goods remotely from a supplier on the list, the local taxable person is obliged to inform the PSP of this fact and that the VAT shall be accountable under the reverse charge method. 

The VAT withholding agent should file Withholding VAT Returns monthly, and make the accompanying payment of due tax using specified forms(templates) designed specifically for these purposes. 

Remote Seller 

The remote seller of a digital intermediary platform operator could also decide to account for VAT for these sales on their own, following the registration in the simplified taxation regime, making the submission of VAT returns starting from the period from which it was obliged to register; and making all accrued VAT payments that it was responsible for from the moment it VAT collection duty rose. 

When the remote vendor or intermediary platform operator is removed from the list, the VAT withholding agent’s responsibility for this vendor ends.  

List and Reporting 

The issuers of payment cards established in Chile, and indicated in the resolution as VAT withholding agents, are responsible for keeping a record called “Digital VAT Withholding Report for Goods”, which should contain all data as instructed by the Internal Revenue Service. 

This report should be sent to tax authorities on the last day of August each year, for withholdings made between January 1 and June 30 of the same year; and on the last business day of February each year, for withholdings made between July 1 and December 31 of the previous year. 

Withholding agents must have a separate accounts that record the VAT withholdings made to remote sellers or digital intermediaries included in the list. First “Digital VAT Withholding Report for Goods” should be submitted by the last business day of February, 2027. 

The report should include all VAT withholding and surcharges related to sellers on the list for the period from July 1 to December 31, 2026. 

Failure to comply with these requirements will result in a penalty to the responsible VAT withholding agent. 

The first list of “Digital VAT Taxpayers Subject to Change of Taxpayer” shall be published by June 15, 2026, and will take effect on July 1, 2026. 

Takeaway

Frequently Asked Questions