The Chilean Tax Authority issued a Resolution that establishes the procedure for simplified registration of direct sellers of low-value goods, and the implementation of a framework for mandatory registration of e-commerce or digital platform operators who facilitate the supplies of low-value goods and services.
The mandate for mandatory simplified registration for digital platform operators has an extensive narrative. It covers both domestic and foreign, natural or legal persons with or without domicile or residence in Chile that facilitate or impact the supply of low-value goods or services supplied through the platform.
Entry into force
The obligation for mandatory registration under the simplified tax regime will commence on October 25, 2025. Starting from that date, all natural and legal persons within the scope of the new simplified taxation regime must register under the new provisions and commence collecting and remitting local VAT.
Scope of the Framework
The Resolution introduced missing pieces for the development of the simplified tax framework for the foreign suppliers of low-value goods. Direct suppliers of low-value goods and e-commerce marketplace operators that facilitate the supplies of low-value goods shall be obliged to register under the terms of the newly established simplified tax regime.
The regime is primarily introduced to cover the distance sales of low-value goods and to extend the VAT responsibility to various digital platforms, as a substantive part of the Chilean Government’s strategy to reduce the non-reporting of VAT for transactions facilitated by non-resident digital platforms.
The regime applies to B2C transactions, where the purchaser is a non-VAT-registered resident in Chile. When it comes to B2B transactions, they are covered under the reverse-charge mechanism after the buyer’s VAT number has been validated.
Low-value goods are tangible personal property whose value is below USD 500 or its equivalent in national currency. The value is based on each item/product, not on consignment.
What types of taxable persons are covered under the simplified tax regime?
Taking into consideration the extensive scope of non-resident and resident taxable persons that are within the scope of the low-value goods regime, the following groups should be registered under the new provisions:
- Domestic and foreign e-commerce marketplaces
- Non-resident sellers of low-value goods
- Redelivevers
- Dropshippers
The obligation of non-resident digital platform operators that facilitate the supply of low-value goods or provision of services to register under the simplified VAT regime is independent of whether the third-party supplier is registered or not. Non-resident e-commerce marketplaces that facilitate the supply of low-value goods are, by default, required to register for VAT, collect VAT, and remit it to the relevant tax authorities.
How to Stay Compliant
- Review the turnover of your sales to customers in Chile
- Determine who your customers are
- Determine whether you supply only low-value goods
- Register under new simplified regime
- Update your registration data if you are already registered
- Submit VAT returns and make VAT payments on time
- Follow the Invoicing and Recording requirements
Please contact us if you have any questions concerning the VAT registration process in Chile and your VAT compliance responsibilities for your business operations. Our tax team would be happy to assist you.
Distant suppliers of low-value goods with customers in Chile should be aware of the latest legislative updates, which establish new registration requirements and associated responsibilities. In addition to strict registration deadlines and VAT charging, there are additional reporting requirements.
Act promptly to eliminate any potential late registration penalty.
Takeaway
Starting from October 25, 2025, non-resident sellers and e-commerce marketplace facilitators of low-value goods to Chilean residents should register under the simplified tax regime. From that date they are required to collect VAT on their sales and make respective remittance under the simplified regime.
Aleksandar Delic
The Resolution above also introduces obligations for the non-resident digital platform operators that facilitate the supply of services by non-residents to register under a simplified regime.
Indirect Tax Manager – E-commerce
Frequently Asked Questions
Starting October 25, 2025, Chile requires non-resident e-commerce sellers and digital platform operators facilitating low-value goods or services to register under a simplified tax regime, collect VAT, and remit it to the tax authority.
All domestic and foreign e-commerce marketplaces, non-resident sellers of low-value goods, redeliverers, and dropshippers facilitating sales to Chilean residents must register under the new VAT regime.
The mandatory VAT registration for affected non-resident sellers and platform operators in Chile begins on October 25, 2025.
The rules apply to low-value goods, defined as tangible personal property valued below USD 500 per item, supplied to non-VAT-registered Chilean residents.
No, B2B transactions are subject to the reverse-charge mechanism if the buyer’s VAT number is validated. The new regime mainly targets B2C sales.
Sellers should review their sales to Chile, determine if they supply low-value goods, register under the new regime, update registration data as needed, submit VAT returns, make VAT payments, and follow invoicing requirements.