Understanding Chile Nexus Rules for Foreign Businesses

Do Foreign Companies Need to Register in Chile?

Yes. Foreign companies that make taxable supplies in Chile are required to register for IVA, regardless of where they are based. Chile has no registration threshold, so registration is required from the first taxable transaction.

Simplified Registration for Non-Residents

Chile offers a simplified VAT registration regime for non-resident digital service providers and ecommerce sellers. This option is available through the SII's online portal and does not require a physical domicile in Chile. Non-residents using the simplified regime cannot claim deductions for Chilean IVA incurred.

Since August 1, 2025, non-resident platforms and digital businesses may also register through this simplified system for the new low-value goods rules.

Standard Registration for Non-Residents with a Local Presence

Foreign companies that establish a physical presence in Chile, such as a branch, office, or agency, must register using the standard IVA registration process, which requires obtaining a RUT (Rol Único Tributario) and appointing a local legal representative.

Filing and Payment Deadlines

IVA returns in Chile are filed monthly. Paper returns are due by the 12th of the month following the reporting period, while electronic returns are due by the 20th. Non-residents using the simplified digital services regime may file monthly or quarterly, with payment due by the 20th of the month following the reporting period.

What Happens If You Don't Register?

Failure to register and collect IVA when required can result in penalties, back assessments, and in serious cases, legal consequences under Chilean tax law. The SII actively monitors foreign payment providers to identify non-compliant non-resident suppliers.

How Kintsugi Helps

Kintsugi Intelligence tracks your Chile IVA obligations and alerts you when registration is required, so you stay compliant without having to monitor every regulatory change yourself.

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