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Chile: Liability for VAT, when seller not VAT-registered

Chile and VAT liability

Taxpayers in Chile purchasing goods or services that are subject to value added tax (VAT) need to verify that the counterparty to the transaction is register for VAT purposes in Chile. If that party is not registered, then the purchaser of the goods or services must effectively “step into the shoes” of the seller and act as the VAT taxpayer.


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In such instances, the Chilean taxpayers must retain (withhold) the amount of VAT on the purchases, and then declare and remit the amount of VAT to the tax administration (SII). These measures have an effective date of 1 August 2018.

The list of registered entities will be updated every six months on the SII website. 


Read an August 2018 report (Spanish) [PDF 199 KB] prepared by the KPMG member firm in Chile


The KPMG report also discusses the following:

  • Bolivia and Panama have been removed from a list of countries considered to have a “preferential tax regime.”
  • Updated customs rules allow the value of imports to be based on the valuation established by an advance pricing agreement (APA) for transfer pricing purposes.

Read TaxNewsFlash

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