SII introduces digital marketplace third-party seller reporting requirements
The Chilean Tax Authority (Servicio de Impuestos Internos – SII) has issued Circular 38/2025, which outlines new third-party seller reporting obligations for digital platforms and electronic payment providers, starting 1 October 2025, with secondary requirements 1 January 2026. These rules aim to strengthen tax oversight of digital intermediation services and improve VAT compliance.
At the same time, Chile is introducing digital marketplace deemed supplier rule.
Digital platforms—both resident and non-resident in Chile—that act as intermediaries between Chilean customers and sellers or service providers must comply with a two-phase reporting and verification framework:
1. Initial Compliance Verification – Effective October 1, 2025
Digital platforms and electronic payment providers must verify whether their users (sellers/service providers) have formally declared the initiation of business activities with the SII before they begin offering intermediation services.
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Sellers claiming exemption (e.g., due to simplified regime or non-taxable status) must explicitly declare this.
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Annual Reporting Obligation: Platforms must report to the SII:
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A list of all individuals and businesses using the platform.
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The total number and value of their transactions.
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A list of users who declared they are not obligated to register with SII, along with:
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The number and cumulative value of transactions per registered user.
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2. Ongoing Periodic Verification – Effective January 1, 2026
Every six months, platforms and electronic payment providers must request updated proof of tax compliance from their users. This includes evidence of continued registration or updated tax status with the SII.
3. VAT Withholding for Non-Compliant Sellers
If a seller fails to demonstrate tax compliance, the platform or payment provider must withhold VAT in advance on their behalf. Key details:
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This withheld VAT is in addition to the VAT owed for the platform or payment provider’s own services.
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The rate of withholding will be determined by a forthcoming resolution but cannot exceed the standard VAT rate.
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In cases where both a platform and an electronic payment provider are involved in the same transaction, only the payment provider will be responsible for making the withholding.
The SII is expected to issue additional guidance and resolutions to specify operational aspects of these new obligations, including technical filing requirements and data standards.
These reforms align Chile with international trends toward enhanced platform-based tax compliance, particularly in the digital and gig economy. The new rules create a shared responsibility model, where platforms must assist the tax authority in identifying and enforcing compliance among users, improving both transparency and tax collection efficiency.
