Introduction
On 25 October 2025, Chile launched one of the most significant changes to its international e-commerce taxation system in decades. Through Law No. 21.713, the country shifted the collection of VAT on low-value imported goods away from the traditional import stage and toward the point of sale.
The reform affects millions of packages entering Chile annually and fundamentally changes how international marketplaces, foreign sellers, Customs authorities, and consumers interact.
The Previous System
Until October 2025, imported goods generally paid VAT at the import stage.
A special exemption allowed many low-value shipments—particularly those declared at USD 41 or less—to enter without paying VAT or customs duties. As a result, tens of millions of small parcels entered Chile every year under the exemption.
According to figures cited by the SII, more than 50 million packages entered Chile in 2024 with declared values of USD 41 or less, representing over 90% of all shipments received during the year.
Authorities argued that the exemption generated significant compliance risks and facilitated informal commercial activity.
The New Model
The reform creates a new category of transaction known as a remote sale.
Goods are deemed to be located in Chile for VAT purposes—even when physically abroad—if:
The buyer is a final consumer in Chile.
The seller is not domiciled in Chile.
The goods are destined for Chile.
The value of each item does not exceed USD 500, including associated charges such as shipping and insurance.
Instead of collecting VAT at importation, VAT is generally charged at the moment of purchase.
The Role of Marketplaces
A central feature of the reform is the introduction of the digital marketplace operator as the VAT taxpayer.
Platforms facilitating transactions between foreign sellers and Chilean consumers become responsible for collecting, declaring, and paying VAT as if they were the seller.
This approach follows international OECD trends that place VAT collection responsibilities on large digital platforms rather than individual merchants.
Simplified Registration System
Foreign sellers and marketplace operators without a presence in Chile can register under a simplified VAT regime administered by the SII.
Registered entities:
Collect 19% VAT at checkout.
File simplified VAT returns.
Pay VAT directly to the Chilean Treasury.
The SII reported that by the time the regime entered into force, 20 foreign marketplaces and merchants had registered, including major global e-commerce operators that account for the vast majority of low-value cross-border purchases made by Chilean consumers.
Benefits for Consumers
Purchases made through registered platforms generally receive:
VAT collection at checkout.
Exemption from VAT at importation.
Exemption from customs duties for qualifying low-value goods.
Faster customs clearance.
By contrast, purchases from non-registered sellers may still require VAT collection during importation and additional customs procedures.
Resolution 142: A Late but Significant Change
One of the most important developments occurred just days before implementation.
Earlier SII guidance excluded two categories of products from the new regime:
Goods subject to special or additional taxes.
Goods requiring prior authorization from other government agencies.
These products were expected to continue using the traditional import-tax model.
However, Resolution No. 142, issued on 15 October 2025 and effective 25 October 2025, removed that exclusion.
As a result, low-value goods subject to special taxes or regulatory approvals may now fall within the simplified VAT regime, although customs permits and regulatory controls continue to apply.
This amendment broadens the scope of the reform beyond what many businesses initially expected.
Economic Impact
The reform has three major policy objectives:
1. Improve VAT Compliance
Authorities seek to reduce VAT leakage associated with millions of low-value imports.
2. Create Competitive Neutrality
Domestic retailers have long argued that foreign sellers enjoyed an advantage when low-value imports entered under preferential treatment.
3. Simplify Collection
By collecting VAT at the point of sale through major marketplaces, authorities can concentrate compliance efforts on a limited number of large platforms rather than millions of individual shipments.
What Happens Next
The success of the system will depend on:
Continued registration of foreign marketplaces.
Effective information sharing between the SII and Customs.
Proper identification of VAT-paid shipments.
Enforcement against non-compliant sellers and platforms.
With Resolution No. 142 expanding the regime at the last moment, Chile’s low-value import VAT framework is now broader than originally envisioned and positions the country among the more advanced jurisdictions globally in the taxation of cross-border digital commerce.
