Chile credit card withholding VAT for non-resident B2C digital services Aug 2022

When foreign provider is not VAT registered, credit or debit card issuers must withhold VAT

From 1 August 2022, Chilian issuers of credit or debit cards must monitor payments for B2C digital services to non-resident providers. Where the provider is not VAT registered in Chile, they must withhold 12% VAT 19%

VAT on non-resident electronic services since 2020

Chile VAT on digital services was imposed in July 2022.  All providers are obliged to register for VAT the tax office, SII Commissioner, via a simplified process. There is no VAT registration threshold. The Chilian Internal Revenue Service will issue a list of non-compliance provider once a year

Check our global VAT and GST on digital services tracker to see which other countries have introduced indirect taxes on electronic services to consumers.

The Internal Revenue Service also provided rules on how service providers can be removed from the non-compliant entities list (i.e. mainly, through their registration and payment of any VAT obligations triggered during their operation in Chile). The Internal Revenue Service provided these rules through Resolution 46, published on 13 May 2022.

Central and South America VAT on digital services