Chiles sets rules for when online marketplace takes on VAT obligations
Chile is implementing new rules on deemed supplier for online marketplaces from 25 October 2025. This reflects global trend to switch the VAT collections from foreign sellers to their facilitating marketplace to combat VAT fraud.
Oct 2025 marketplace VAT obligations
The tax authorities’ Circular 39/2025 outlines that online marketplaces will be responsible for VAT when:
-
They operate platforms that facilitate third-party transactions.
-
The transactions are subject to Chilean VAT.
-
Neither the seller nor the buyer is a registered VAT taxpayer in Chile.
For domestic sellers, if the seller is a registered VAT taxpayer in Chile, they remain responsible for VAT. However, if they fail to inform the platform of their status, the platform becomes liable for the VAT. Regardless, platforms must report seller details and transaction amounts to the tax authority.
For foreign sellers, the platform is responsible for VAT unless the seller is a registered taxpayer in Chile, even under the simplified tax regime.
Regarding buyers, if the buyer is a VAT taxpayer in Chile, they are responsible for the VAT, provided they inform the platform of their status. If they fail to do so, the platform assumes VAT liability. For buyers outside of Chile, VAT generally does not apply, unless the seller is Chilean, in which case the seller remains responsible.
The Circular also clarifies that these obligations do not apply to platforms providing only advertising or payment processing services, nor to transactions outside the scope of VAT.
In cases involving multiple intermediary platforms, only the platform that authorizes or processes the payment is considered liable for VAT. Additional resolutions will clarify operational definitions for “authorizing” or “processing” payments.
