| Update: | Compliance Alert – VAT changes from 1 November 2024 |
| Date: | 2024-11-13 |
Published on 24 October 2024, Law No. 21,713 introduces major changes to VAT on imports, by removing the VAT exemption for goods under USD 41 and applying VAT to remote purchases up to USD 500 by buyers who are not VAT taxpayers.
The main changes include the following:
- Removal of VAT exemption for imported goods with a value below USD 41;
- For remote purchases of goods up to USD 500 by non-VAT taxpayers, the goods will be considered located in Chile for tax purposes, making the transaction subject to VAT. However, the VAT will not apply if already paid by the seller or digital platform;
- Imports below value USD 500 are exempt from extra customs duties, while goods above this value will need to follow standard VAT and customs rules.
Most provisions will take effect 12 months from 24 October 2024, with certain provisions effective as of 1 November 2024.