Useful Information About VAT in Chile
What is VAT?
VAT stands for Value Added Tax, which is paid by final consumers when purchasing goods, products, and services. In Chile, it is 19%.
How is VAT calculated in Chile?
It's very simple! To calculate VAT, multiply the net amount by 0.19.
How is the Total Amount calculated?
It's just as simple! To calculate the Total Amount, multiply the Net Amount by 1.19.
How is the Net Amount calculated?
To calculate the Net Amount, divide the Total Amount by 1.19.
How and when is VAT paid in Chile?
VAT is declared monthly through forms F29 and F50. It can be paid at a bank or online.
Can I defer VAT payment?
It can be deferred for up to two months after the due date, but only if the requirements to apply for it are met.
What is Form 29?
It is the document that allows the monthly declaration of taxes such as VAT in Chile, Provisional Monthly Payments (PPM), Withholding on Fee Receipts, and Single Second Category Tax.
What is Form 50?
Called the "Monthly Tax Declaration and Simultaneous Payment Form," it allows taxpayers to declare and pay various taxes in a single transaction, each with different legal due dates.
What services are exempt from VAT?
Passenger Transport, Education, Outpatient Health Services, Event Tickets, and Unfurnished Property Rentals.
Do professional societies have to pay VAT?
No, but they must be composed only of natural persons. Additionally, the partners must exclusively carry out professional activities or services and must have the same profession.
What are the VAT payment deadlines in Chile?
If you pay at a bank, the deadline is the 12th of each month. If you pay online, the deadline is the 20th of each month.
What are the online payment methods for VAT?
You can pay with a credit card, direct debit from a checking account, or a bank mandate for automatic withdrawal from your account.
Can I pay VAT with a credit card from abroad?
Yes, VAT can be paid without any issues using a foreign credit card.
What happens if I get paid through PayPal or another payment method not recognized by the SII?
The obligation still exists. The foreign company must declare and pay taxes based on the sales made and payments received.
What is VAT debit?
It is the VAT charged on receipts, invoices, and other documents issued for sales and services during the respective tax period.
What is VAT credit?
It is the VAT recorded in invoices and other documents received that certify purchases or services used in the tax period.
What happens if I have more VAT debit than VAT credit?
Any credit balance greater than the debit is carried over for application in the following month.
Which companies are exempt from VAT?
Education, news agencies, passenger transport companies, public hospitals, and others as defined by law.
Can I recover VAT when purchasing a property?
Yes, it allows you to recover between 10% and 16% of the value of a purchased apartment.