Chile – VAT Responsibility of Digital Intermediation Platforms for Domestic Transactions

The Internal Revenue Service (SII) issued Official Ruling No. 429 on February 18, 2026, which provided a much-needed explanation regarding the VAT responsibilities of the digital platform operator that intermediates in the domestic supply of goods or services. 

The ruling was published to shed light on the platform’s obligation to mediate the connection between restaurants, delivery service providers, and customers. An important parameter is that the provided good or service is already in Chile, the customer is based in Chile, the restaurant is in Chile, and the delivery service providers are in Chile. 

The latest amendments to the Law on Sales and Services (LIVS) defined, in general terms, that operators of digital intermediation platforms should be considered accountable for VAT when they facilitate the provision of services or the supply of goods in the underlying transaction, which is taxable. 

Official Ruling

The Official Ruling No. 429 introduced much-needed clarification on which cases the platform facilitator is not accountable for VAT on the underlying transactions. The SII clarified that, under the Labor Code, delivery services performed by local employees are exempt from VAT. 

Following this, the VAT accountability cannot be extended to the platform operator that merely intermediates in the delivery of these services, since there is no VAT on the underlying service. The second parameter that SII used in making its Ruling is the application of the VAT rules to domestic supplies. 

When the goods are in free circulation in Chile, and when the suppliers are domiciled or resident in the country, the platform operator is not responsible for VAT on the transaction. In these types of transactions, VAT accountability lies with the domestic supplier or resident, and the platform is not responsible. 

Previously adopted Circular No.39/2025 states that suppliers are obliged to inform the platform operator of their VAT registration data, and if missed(or the platform loses track), the VAT responsibility is transferred to the platform operator. 

Conclusive Remarks 

However, this Ruling limits the previous general provision and the platform’s VAT accountability exposure in cases where the goods are in free circulation in the country, and the vendor is a domestic business. Following this, the platform operator isn’t responsible for verifying the seller’s VAT registration in these circumstances, and the lack of proper validation doesn’t relieve the vendor of VAT accountability for these transactions. 

While Circular No. 39 of 2025 generally requires vendors to inform platforms of their VAT‑taxpayer status—and places VAT liability on the platform if that information is missing—the ruling explicitly states that this obligation does not apply when the goods are situated in Chile, and the seller is domestic. Consequently, platforms are not required to verify or hold information on the vendor’s VAT status to avoid liability in such cases.

The conclusion: in the scenario where the platform operator merely intermediates in the facilitation of the supply of goods or the provision of services, and the parties involved (vendor, customer, goods) are domestic or resident in the country, the VAT responsibility remains with the domestic supplier or provider.