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Chile VAT on digital currencies

Internal Revenue Service confirms VAT on cryptocurrencies

The Internal Revenue Service of Chile (SII) has confirmed the VAT liabilities on the trading of digital currencies such as bitcoin. Like many jurisdictions, trading of cryptocurrencies are treated as exempt from VAT. These digital currencies are considered an intangible.

However, commissions for services for the purchase and sale of cryptocurrencies on behalf of third parties, sending, receiving and depositing cryptocurrencies, considering that these services are part of the intermediation of digital assets, they are taxed with VAT.

According to the new rules of service incorporated in the LIVS by Law 21,420, a ticket or invoice must be issued in this regard, subject to VAT, depending on whether the purchaser is a consumer or a taxpayer.

his falls into line with the preliminary EU VAT on cryptoassets review being undertaken by the VAT Committee.

VAT on cryptocurrencies

Stage Examples VAT Treatment
Crypto-assets Payment, security or utility tokens Treated as currency
Creation of tokens Mining or forging Out of scope of VAT
Supplies free of charge Airdrop Out of scope of VAT
Supplies for consideration Taxable; but exempt
Storage and transfer Hot or cold digital wallets Taxable; but exempt
Exchange for crypto-assets or cryptocurrencies Taxable; but exempt
Cryptocurrencies as consideration for supply Taxable; VAT due
Token modification Modifications, forks or splitting of tokens Out of scope of VAT


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