Chilean VAT for digital services: which foreign companies must file Form 129

Since 2020, Chile has applied VAT to digital services provided from abroad to Chilean consumers, even when the provider has no office, staff or domicile in the country. For foreign companies selling into Chile — streaming platforms, SaaS, marketplaces, digital intermediation services, among others — this translates into a specific tax obligation, different from that of an ordinary Chilean company: the simplified Digital VAT regime, filed through Form 129 (F129).

Who it applies to

The simplified regime reaches providers without domicile or residence in Chile that supply digital services, or — since October 2025 — that remotely sell low-value goods (up to roughly USD 500) to consumers in Chile, including digital intermediation platforms that facilitate those sales.

Unlike other jurisdictions, Chile sets no minimum revenue threshold for this obligation: in principle, the requirement to register and file begins with the first sale to a Chilean end consumer (B2C).

What Form 129 does NOT cover

The simplified regime is designed for sales to end consumers (B2C). When the Chilean buyer is itself a registered VAT taxpayer, a different treatment usually applies — under the general regime rather than Form 129 — so it’s worth checking case by case whether the transaction is genuinely B2C or involves sales to businesses.

How to file, without a Chilean bank account

One distinctive feature of this regime is that it was designed so a foreign provider can comply without opening a Chilean bank account or issuing local electronic invoicing:

• Registration and filing take place through a dedicated SII web portal, using a username and password assigned at the time of registration — no digital certificate is required, unlike the general regime.
• Payment can be made in US dollars or euros, via international wire transfer (SWIFT), with no need to handle Chilean pesos.
• There’s no requirement to issue Chilean electronic tax documents (DTE); standard foreign commercial invoices are accepted as supporting records.
• Filing is monthly or quarterly, depending on the option chosen by the taxpayer, and only needs to be submitted for periods where income from these activities actually occurred.

What records to keep

The foreign provider must keep digital records of transactions, payments received, and the logic used to determine that the customer is located in Chile — such as IP address or the country that issued the payment card — since the SII may request them in the event of an audit.

Rate and taxable base

The applicable VAT rate is 19%, applied to the total consideration received for the service or sale, regardless of its nature. As a general rule, no expense deductions apply within this simplified regime: it’s calculated on the gross income received from covered transactions.

What happens if you don’t comply

Non-compliance isn’t just an abstract administrative risk: the SII has used mechanisms such as instructing Chilean credit card issuers to withhold VAT from digital providers that haven’t registered under the regime, which can directly affect the foreign company’s cash collection.

This article provides general information about the Digital VAT regime before the Chilean Internal Revenue Service (SII). It does not constitute tax advice for a specific case; classifying a given transaction as B2C or B2B, and the specific application of the regime, should be reviewed against the company’s actual activity. Izquierdo Deramond Consultores is a private and independent firm and does not represent the SII or any public authority.

Does your company sell digital services or goods into Chile? Book an initial assessment or see Chilean VAT for foreign companies.