Chile’s new administration announced a proposal to temporarily suspend VAT on residential property sales for one year, aiming to revive a stagnant housing market. The measure could lower final housing prices by 3‑8%, but input VAT on construction costs would become non‑creditable and must be capitalised. Its success hinges on congressional approval and swift implementation.
The bill, announced on March 11 2026, proposes a one‑year suspension of VAT on residential property sales, subject to congressional approval.
Industry estimates suggest the suspension could lower final housing prices by between 3% and 8%.
Because the sales are VAT‑exempt, input VAT on construction costs cannot be recovered and must be capitalised as part of the property’s cost base.
Success depends on congressional approval, the speed of implementation, the degree of price pass‑through, and prevailing credit conditions.
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KPMG · 2 days ago
KPMG releases its latest installment of the Taxation of the Digitalized Economy series, summarising VAT and indirect tax updates that affect digital platforms and cross‑border services. The update covers new VAT responsibilities in Chile, Significant Economic Presence rules in Côte d’Ivoire, DAC8 crypto and platform reporting progress in the EU, and emerging VAT measures for digital services in Jamaica, South Africa, Kazakhstan, Sweden, Mexico and Poland. These developments are relevant for businesses relying on digital business models, platforms and data‑driven services.
Bloomberg Tax · about 1 month ago
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.
VatCalc · about 2 months ago
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.
Edicom Group · 2 months ago
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.
Bloomberg Tax · 2 months ago
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.
VatCalc · 1 day ago
Argentina has reduced the VAT on electricity used in agro‑industrial irrigation systems to 10.5% effective 1 April 2026, cutting the standard 21% rate in half. The measure, part of the Labour Modernisation Law, targets energy consumption linked to irrigation to lower input costs for farmers and support export competitiveness.
