How vat / sales tax works in Chile
Chilean VAT defaults to 19% on sales and, since Law 21.420, on virtually all services, with output tax charged, input tax credited, and monthly Form 29 returns.
Foreign B2C digital sellers face collection through withholding and registration tracks, while exports zero-rate and defined exemptions cover health, education, and finance.
DTE electronic invoicing validates every transaction, monthly filing sets the rhythm, and compliance law 21.713 tightened documentation and penalties.
Tax rates at a glance
- Standard VAT
- 19%
- Services coverage
- Near-universal
- Exports
- 0%
- Exempt supplies
- Exempt
- Digital collection
- Withholding
- Filing form
- Form 29
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersSaaS foundersFreelancersExpatsCross-border traders
Watch out for
- Near-universal service taxation means exemptions are rare and specific, so legacy service contracts assuming no VAT now under-collect systematically.
- Foreign digital collection makes offshore SaaS and streaming liable from qualifying B2C sales, with platform and withholding mechanics layered on top.
- DTE validity conditions deny credits on formal defects, which makes issuance discipline part of every sale.
- Compliance law 21.713 raised documentation and penalty stakes, so informal arrangements face harsher consequences than before.
Frequently asked questions
What is the VAT rate in Chile?
Chile applies 19% VAT in 2026 on goods and nearly all services since Law 21.420, with exports zero-rated and defined health, education, and finance exemptions.
Do foreign digital sellers collect Chilean VAT?
Yes on B2C digital supplies through withholding and registration tracks. B2B flows follow separate documentation and reverse mechanics.
How often are Chilean VAT returns filed?
Monthly through Form 29 backed by DTE electronic invoicing, with credits conditioned on valid issuance.