Six months into 2026, Chile’s VAT landscape is defined less by new legislation than by the continued implementation of frameworks introduced in previous years. The most important developments involve the maturation of the country’s cross-border digital VAT regime, the gradual modernization of domestic e-invoicing infrastructure, and a broader tax reform proposal that remains focused primarily on income tax rather than indirect taxation.
Cross-Border Digital VAT Enters a More Mature Phase
Chile’s 19% VAT regime for non-resident digital service providers has now moved beyond its initial registration phase and into a period where collection and enforcement outcomes are becoming visible.
VAT collected on low-value foreign purchases exceeded USD 41 million during the first quarter of 2026 alone, with cumulative collections since the relevant measures entered into force surpassing CLP 85 billion. The figures suggest that Chile’s approach to taxing cross-border digital consumption is now generating meaningful revenue rather than functioning primarily as a compliance exercise.
The regime’s scope has also become clearer. During 2026, the Servicio de Impuestos Internos (SII) confirmed that foreign online gambling and betting platforms fall within the same simplified VAT framework that applies to other non-resident digital service providers.
A more significant operational development arrived through Resolución Exenta SII N°05, issued on 14 January 2026 and effective from 1 June 2026. Under the resolution, Chilean banks and payment-card issuers become VAT withholding agents for foreign suppliers that appear on an SII non-compliance list for failing to register or meet their VAT obligations.
Importantly, this is not a universal withholding regime. The mechanism applies only to suppliers specifically identified by the SII, providing the tax authority with a targeted enforcement tool against non-compliant foreign sellers.
Domestic E-Invoicing Modernization Continues, but Slowly
While cross-border VAT collection has continued to advance, Chile’s domestic invoicing modernization program has moved more gradually.
The planned enhancement of the DTE (Documento Tributario Electrónico) framework and dispatch-guide requirements has been postponed several times, most recently to 1 November 2026 under Exempt Resolution No. 52 of 10 April 2026.
Additional compliance measures have nevertheless continued to move forward. These include centralized digital-signature requirements for electronic receipts, updated compliance standards for printed electronic invoices, and new fiscalization requirements affecting vending-machine transactions.
Taken together, the developments suggest that Chile remains committed to strengthening electronic reporting and transaction controls, although implementation timelines have proven more difficult to maintain than originally anticipated.
Targeted Changes for Small Taxpayers
Several smaller measures have focused on taxpayer simplification and formalization.
A revised simplified VAT regime for certain domestic small businesses entered into force in January 2026, replacing administrative rules that had remained largely unchanged for decades. Authorities are also continuing efforts to bring informal and small-scale economic activity into simplified reporting frameworks, including programs aimed at market vendors and subsistence-level workers.
The SII has also issued additional guidance on the tax treatment of digital asset transactions, providing greater certainty in an area that previously had limited administrative interpretation.
A Broader Tax Reform Remains Focused on Income Tax
The most significant legislative proposal introduced during 2026 is the draft Law for National Reconstruction and Economic and Social Development.
The proposal is primarily an income-tax package. Its principal measures include a gradual reduction in the corporate income-tax rate, restoration of tax integration between corporate and personal taxes, capital-repatriation incentives, and long-term tax-certainty provisions for major investors.
VAT plays only a limited role. The principal indirect-tax measure is a proposed one-year VAT exemption on the first sale of new homes intended to support Chile’s residential property market.
As of mid-2026, the proposal remains under consideration and has not been enacted.
What the Developments Indicate
At midyear 2026, Chile’s VAT framework appears to be in a phase of administrative consolidation rather than structural reform.
The cross-border digital VAT regime established earlier in the decade is now producing measurable revenue and has acquired stronger enforcement mechanisms. Domestic e-invoicing and reporting systems continue to evolve, although implementation has proceeded more slowly than planned. Meanwhile, the government’s principal tax reform initiative remains focused on income tax rather than VAT.
For businesses operating in Chile, the practical message is straightforward: the most significant developments are occurring in administration, enforcement, and compliance rather than in the underlying structure of the VAT system itself.
