The amendment to the Sales and Services Tax Law extends the application of VAT to imported goods worth less than USD 500.
On October 25, 2025, the amendment to Article 3 bis of the Sales and Services Tax Law (LIVS) will come into force, which was introduced by the Tax Compliance Law in 2024.
Thus, international purchases of low-value goods (less than USD 500) will be subject to Value Added Tax (VAT), and a simplified taxation regime was established in Paragraph 7 bis of the LIVS.
What goods does this amendment consider to be low value?
Goods whose individual price, including charges such as shipping, insurance, or packaging, does not exceed USD 500 or its equivalent in local currency. This limit is calculated per item, and gifts or goods delivered without consideration are excluded.
Who is affected by this amendment?
- Buyers in Chile who are not VAT taxpayers (individuals in general).
- Foreign sellers without domicile or residence in Chile.
- Digital intermediation platforms (such as marketplaces or e-commerce) that facilitate the sale of these goods.
What changes does this law introduce?
- VAT will be charged to the buyer from October 25, 2025.
- Digital platforms that process or authorize payment will be responsible for declaring and paying VAT.
- Foreign operators must register for the simplified regime through the SII’s Digital VAT Portal.
Which platforms must register?
- Online marketplaces, e-commerce, sales websites, remote payment gateways, drop shipping companies, and redeliverers that facilitate delivery in Chile.
- This does not apply to companies that only process payments or provide VAT-exempt services.
How is it implemented?
- Platforms will be able to register for the simplified regime from August 2025, but it will be legally effective from October 25, 2025. Those who are registered will have more expedited customs operations.
- If you do not register on this platform, the law incorporates a supplementary tax withholding obligation for payment methods involved in transactions with non-resident taxpayers who are not domiciled in Chile.
- VAT will be applied to transactions completed from that date, regardless of the tax period in which it is declared.
The aim of this amendment is to ensure tax compliance and thus promote fairer and more orderly international e-commerce.
For more information please contact our Tax team:
Rodrigo Albagli | Partner | ralbagli@az.cl
Álvaro Rosenblut | Partner | arosenblut@az.cl
Andrea Bobadilla | Director Tax Group | abobadilla@az.cl
Catalina Rojas | Senior Associate | crojas@az.cl
Javiera Melo | Associate | jmelo@az.cl
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