New reporting and other obligations for digital platforms and payment providers will apply as from 1 October 2025 and 1 January 2026.
Chile’s tax authorities issued Circular No. 38 on 30 April 2025, which is based on a 2024 law that introduced new tax compliance requirements to strengthen fiscal responsibility and economic transparency. Circular No. 38 repeals and updates prior instructions on taxpayer registration and business commencement notifications. In addition to administrative and technological updates, the circular introduces a noteworthy compliance shift: designated public and private third parties will be required to verify taxpayer registration and compliance before economic transactions can occur.
Starting on 1 October 2025, the following entities will be required to confirm that their customers have properly notified the Chilean tax authorities of their business commencement:
After producing the initial report and starting on 1 January 2026, reporting entities will have to request proof of compliance every six months using electronic certificates issued by the tax authorities. Penalties will apply for noncompliance.
In addition to the verification obligations, the tax authorities may require payment operators and platforms to withhold an advance VAT amount (equal to a percentage of the value of the underlying transaction) from noncompliant sellers. This withheld amount, which may be offset against the seller’s VAT liability, will be specified in a separate resolution by the tax authorities.
The Chilean government is aiming toward stricter enforcement of the indirect tax rules where market access is based on compliance verified by third parties. This approach should enhance oversight and traceability, but at the same time it will impose new operational and legal obligations on non-governmental actors, illustrating how the tax authorities are using third parties to identify noncompliant remote sellers.
Cristian Vargas
BDO in Chile
Chile’s tax authorities issued Circular No. 38 on 30 April 2025, which is based on a 2024 law that introduced new tax compliance requirements to strengthen fiscal responsibility and economic transparency. Circular No. 38 repeals and updates prior instructions on taxpayer registration and business commencement notifications. In addition to administrative and technological updates, the circular introduces a noteworthy compliance shift: designated public and private third parties will be required to verify taxpayer registration and compliance before economic transactions can occur.
Starting on 1 October 2025, the following entities will be required to confirm that their customers have properly notified the Chilean tax authorities of their business commencement:
- Public institutions and municipal governments;
- Commercial banks;
- Electronic payment service providers and operators; and
- Digital platforms acting as intermediaries.
After producing the initial report and starting on 1 January 2026, reporting entities will have to request proof of compliance every six months using electronic certificates issued by the tax authorities. Penalties will apply for noncompliance.
In addition to the verification obligations, the tax authorities may require payment operators and platforms to withhold an advance VAT amount (equal to a percentage of the value of the underlying transaction) from noncompliant sellers. This withheld amount, which may be offset against the seller’s VAT liability, will be specified in a separate resolution by the tax authorities.
BDO Insights
The Chilean government is aiming toward stricter enforcement of the indirect tax rules where market access is based on compliance verified by third parties. This approach should enhance oversight and traceability, but at the same time it will impose new operational and legal obligations on non-governmental actors, illustrating how the tax authorities are using third parties to identify noncompliant remote sellers.Cristian Vargas
BDO in Chile