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Chile VAT on $500 imported B2C goods

B2C Sellers and marketplaces to charge VAT in checkout on low-value consignments of goods

Chile is proposing to impose VAT on low-value consignments of goods being imported directly to consumers. Any consignment at or below US$500 will attract VAT at the online checkout, and the sellers will have to register for VAT and submit returns and remittances. This will be through a simplified registration scheme with no registration threshold.  In the case of failure to register, payment service providers (e.g. credit cards) would have to withhold the VAT.

Similar measures already apply to Chile VAT on digital supplies.

The measure will extend to deemed supplier marketplaces. For VAT purposes, they will become the party responsible for VAT collections on behalf of their third-party sellers.

The Bill is now in Parliament for consideration.


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