Chile Enacts Tax Compliance Bill: VAT on Low-Value Imports Now Mandatory for Non-Residents

• Chilean Congress enacted the Tax Compliance Bill at the end of October.
• Introduces VAT on low-value imports for consumers.
• Current Import VAT exemption threshold of $41 (approx. £32) will be removed.
• Non-resident providers must register for VAT and charge 19% VAT on consignments valued at or below $500 (approx. £395).
• No VAT registration threshold for non-resident sellers.
• A simplified registration scheme will be implemented for affected businesses.
• Payment service providers must withhold VAT if suppliers fail to register.
• This measure aligns with existing VAT rules for digital supplies.

Source: fiscalsolutions.co.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.