Countries › Chile › Guide › 6. Taxes › Digital services tax in Chile: VAT on foreign streaming, software, cloud, advertising and platforms, low value online purchases and the income tax side

Digital services tax in Chile: VAT on foreign streaming, software, cloud, advertising and platforms, low value online purchases and the income tax side

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Last verified: 2026-10-26 · Status: Stable

Chile has no separate digital services tax; instead it applies its 19 percent VAT to digital services sold from abroad to Chilean consumers. Foreign providers of streaming, software, cloud, advertising and intermediation register in a simplified SII regime, charge VAT, file monthly or quarterly and pay by the 20th, with no input credit and no invoices. Since Ley Nº 21.713, platform operators are treated as the seller of goods and services concluded through them, and goods bought online from abroad for up to US$500 are taxed as located in Chile.

USD figures use the Central Bank exchange rate of CLP 986.58 per US dollar published in the Diario Oficial of 23 October 2026 (Ley Nº 18.840 art. 44). Tax units use the SII values of UTM CLP 72,151 and UTA CLP 865,812 for October 2026 and UF CLP 41,221.08 for 26 October 2026. Conversions are for orientation only.

Key facts

Separate digital services tax	None; 19 percent VAT applies to foreign digital services textDL Nº 825, art. 8 letter n) and art. 35 A, as of 2026-10-26 · in force
VAT on digital services supplied from abroad to Chilean consumers	19 %DL Nº 825, art. 8 letter n) and art. 14, as of 2026-10-26 · in force
Simplified regime filing and payment deadline (day of month after the period)	20 dayDL Nº 825, art. 35 E, as of 2026-10-26 · in force
Ceiling for VAT on remote purchases of goods from non residents treated as located in Chile	500 USDDL Nº 825, art. 4, as amended by Ley Nº 21.713, as of 2026-10-26 · in force
Platform operators liable as sellers for VAT on sales concluded through them	Yes textDL Nº 825, art. 3 bis, as of 2026-10-26 · in force
Withholding on payments abroad for standard software	Exempt textDL Nº 824, art. 59, as of 2026-10-26 · in force

The rule

1. Four kinds of paid services provided by persons domiciled or resident abroad are VAT taxable: intermediation of services provided in Chile or of sales that lead to an import; supply of digital entertainment content such as video, music, games, texts, magazines, newspapers and books by download, streaming or other technology; making available software, storage, platforms or IT infrastructure; and advertising, whatever its medium.
Cost to do it: 19 percent VAT on the price charged to Chilean users.
Example: A monthly subscription of US$10 sold to a Chilean consumer bears US$1.90 of VAT (CLP 1,875). / US$10 plus US$1.90 of VAT.Decreto Ley Nº 825, as amended by Ley Nº 21.210, Art. 8 letter n) Nº 1 to Nº 4, 2020-02-24 official text · verified 2026-10-26

2. For remotely provided services, use in Chile is presumed when, at the time of contracting or paying, at least two of these apply: the IP address or other geolocation places the user in Chile; the card, bank account or other payment means is issued or registered in Chile; the billing address is in Chile; or the mobile SIM has a Chilean country code.
Cost to do it: Determines whether the 19 percent VAT applies to a foreign provider.Decreto Ley Nº 825, as amended by Ley Nº 21.713, Art. 5 third paragraph, 2024-10-24 official text · verified 2026-10-26

3. Non residents that sell services or goods to persons in Chile who are not VAT taxpayers fall under a simplified regime: they charge 19 percent on the price, have no input VAT credit, are released from issuing tax documents, and choose a tax period of one or three months. Returns are filed and paid electronically on the SII portal by the 20th of the month after the period, and the SII may set rules for payment in foreign currency. Refunds to customers for cancellations can be deducted in later periods.
Cost to do it: No registration fee; compliance cost is the monthly or quarterly online return.
Example: A provider with CLP 1,000,000 of monthly Chilean consumer sales charges CLP 190,000 of VAT and pays it by the 20th. / On US$1,013.60 of monthly sales, about US$192.58 of VAT.Decreto Ley Nº 825, Art. 35 A to art. 35 I, 2020-02-24 official text · verified 2026-10-26

4. The operator of a digital intermediation platform, Chilean or foreign, is treated as the taxpayer, as if it were the habitual seller or provider, for taxed sales and services concluded through the platform, unless the underlying seller or buyer is a VAT taxpayer. Services consisting only of advertising or payment processing are not platforms for this rule. If several platforms take part, only the one that authorises or processes the payment is the taxpayer. Foreign operators use the simplified regime.
Cost to do it: Shifts the VAT charge and collection to the platform.Decreto Ley Nº 825, as amended by Ley Nº 21.713, Art. 3 bis; Ley Nº 21.713 third transitory article Nº 1, 2024-10-24 official text · verified 2026-10-26 · changed: Added by Ley Nº 21.713 (Diario Oficial 24 October 2024) and in force twelve months after publication, from October 2025.

5. Goods located abroad that a person who is not a seller or service provider buys remotely from a non resident are treated as located in Chile, and so subject to VAT, when they are destined for Chile, even before shipment, provided the price including accessory charges billed in the same operation does not exceed USD 500. Foreign sellers collect this VAT through the simplified regime.
Cost to do it: 19 percent of the price on qualifying low value online purchases.
Example: An online order of US$120 shipped from abroad to a Chilean consumer carries US$22.80 of VAT (CLP 22,494). / US$120 plus US$22.80.Decreto Ley Nº 825, as amended by Ley Nº 21.713, Art. 4 fourth paragraph; Ley Nº 21.713 third transitory article Nº 1, 2024-10-24 official text · verified 2026-10-26 · changed: Added by Ley Nº 21.713 (Diario Oficial 24 October 2024) and in force twelve months after publication, from October 2025.

6. On the income tax side there is no turnover tax on digital revenue. Payments by Chilean businesses abroad for software are subject to additional tax withholding at 15 percent, except standard software, whose use rights are limited to what is needed to use it, which is exempt; other royalties and services follow the general withholding rules.
Cost to do it: Withholding is a cost to the foreign provider unless the contract grosses it up.Decreto Ley Nº 824, Art. 59 first paragraph, 1974-12-31 official text · verified 2026-10-26

Situation	Who collects 19 percent VAT	Documents	Rule
Foreign streaming, software, cloud or advertising sold to a Chilean consumer	Foreign provider under simplified regime	None required; online return by the 20th	Art. 8 letter n), 35 A to 35 E
Same service bought by a Chilean VAT registered business	Chilean business, by reverse charge	Self assessed in its F29	Art. 11 letter e)
Sale concluded through a digital platform to a consumer	Platform operator that processes payment	As seller; foreign operators use simplified regime	Art. 3 bis
Online purchase of goods from abroad up to USD 500	Foreign seller under simplified regime	None required	Art. 4

Who collects VAT on cross border digital transactions (DL Nº 825 as in force on 26 October 2026).

Worked example

A US streaming company has 50,000 Chilean subscribers paying US$10 a month. It charges 19 percent VAT, collecting US$95,000 a month (CLP 93,725,100), which it may declare monthly or quarterly through the SII portal and pay by the 20th of the following month (art. 35 D and 35 E). It recovers no input VAT and issues no Chilean invoices (art. 35 C).
If a Chilean company subscribes to the same service for business use, the provider charges no VAT where the customer is a VAT taxpayer, and the company self assesses it under the reverse charge rule. Argentine providers selling into Chile follow the same rules; the Argentine side of any cross border sale is covered in the Argentine guide.

Step by step

Map Chilean revenue streams to the four art. 8 letter n) categories and to sales of goods under USD 500.
Check whether customers are VAT taxpayers (business to business sales use reverse charge) or consumers (simplified regime).
Register in the SII simplified regime for non residents and choose a monthly or quarterly period.
Price in VAT at 19 percent on consumer sales and file and pay by the 20th after each period.
Keep the evidence used for the two of four location indicators, since the SII can verify with technological means wherever data is hosted (art. 35 I).
For B2B licences paid by Chilean companies, agree in the contract who bears income tax withholding under art. 59.

Common traps

There is no minimum turnover threshold in the simplified regime articles; the first Chilean consumer sale triggers the obligation.
Platforms become liable for the underlying seller's VAT under art. 3 bis even though they only intermediate.
The USD 500 rule includes accessory charges billed in the same operation, such as shipping, in the price test.
Selling to a Chilean business does not remove VAT; it moves the charge to the buyer, who must self assess.
Simplified regime taxpayers get no input VAT credit, so local costs that bear VAT are a real cost.

Sources

Related: Chile country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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