Changes to VAT on Imports in Chile Effective November 1, 2024
Law No. 21,713, published on October 24, 2024, brings significant changes to the VAT system in Chile, particularly concerning the importation of goods. The law introduces key adjustments aimed at improving tax compliance.
The Main Changes
- The exemption from VAT on imported goods valued under USD 41 is abolished.
- For purchases of tangible goods located abroad and bought remotely, up to a value of USD 500, the law considers these goods to be located in Chile for tax purposes when bought by non-VAT taxpayers. This means that VAT will apply to these transactions, ensuring that taxes are applied when individuals import goods for personal use. However, if the seller or digital platform has already paid VAT, the exemption may still apply.
- Imports valued at under USD 500 will be exempt from additional customs duties. Goods exceeding this amount will be subject to the standard VAT and customs regulations.
These changes will come into effect 12 months after October 24, 2024, with certain provisions—such as the exemption from customs duties for imports under USD 500 - taking effect on November 1, 2024.
There’s more you should know about global e-invoicing changes – learn more about the new and upcoming regulations.
