Global VAT & Indirect Tax News

The Chilean Internal Revenue Service issued Letter No. 285 on Feb. 4, clarifying VAT rules for the special construction company credit (CEEC) and urban housing development. The letter confirms that CEEC can be requested at 32.5% or 16.25% if the development is related to housing, and that construction of social housing under state subsidies is not treated as a general construction contract aimed at housing.

Chile’s Internal Revenue Service (SII) will shift VAT collection from non‑resident sellers to Chilean financial institutions starting 1 June 2026, imposing a 19 % withholding rate on eligible transactions. The first list of non‑compliant digital VAT taxpayers will be published 15 June 2026, with financial institutions required to file monthly Form 29 and a semiannual report by the last business day of February 2027.

Chile’s Internal Revenue Service (SII) has issued new resolutions in 2025 that expand electronic invoicing obligations. The updates require digital platform operators to verify seller registrations, mandate electronic receipts for all in‑person sales, and introduce a Delivery Note Registry with detailed transport information. Electronic invoicing has been mandatory since February 1 2018, and the SII continues to enforce validation and acceptance timelines.

Chile's tax authority issued Letter No. 24 on Jan. 7 clarifying that VAT payers receiving taxable services from nonresident providers must issue purchase invoices and pay VAT. The letter also requires retroactive invoicing if invoices are not issued in the same tax period as the remuneration. These guidance rules affect Chilean businesses dealing with foreign service providers.