Introduction
In Chile, Value-Added Tax (VAT) is a key indirect tax applied to the sale and provision of goods and services. The standard VAT rate is 19%, with specific exemptions and zero-rated categories for certain goods and services.
These VAT provisions are designed to support social welfare initiatives and improve the competitiveness of specific industries, such as exports and cultural services.
VAT rates
| Rate | Type | Examples of Goods & Services |
|---|---|---|
| 19% | Standard | Most goods and services sold domestically |
| 0% | Exempt | Exports, certain cultural and sporting events, real estate, freight services, international passenger transport |
Digital Services and Cross-Border VAT
As of 2020, VAT also applies to digital services provided by foreign suppliers. These suppliers are required to collect VAT on sales to Chilean consumers, bringing their tax obligations in line with those of local providers.
VAT is also levied on low-value imports, with limited exceptions. This measure was introduced to improve tax compliance and reduce informal trade.
The introduction of Law No. 21,713 has further clarified and streamlined VAT treatment for cross-border services and foreign-sourced goods.
Additional Excise Taxes
Certain luxury goods, such as jewellery, are subject to excise taxes ranging from 15% to 50%, depending on the product category.
For more information, visit the Servicio de Impuestos Internos (SII) website.