Guide to Chile IVA Taxability and Rates

Standard Rate

The standard IVA rate in Chile is 19%, applied to the following taxable supplies:

• Sales of movable tangible goods

• Sales of immovable tangible goods (with some exceptions)

• Provision of services

• Imports of goods

• Digital services provided by non-resident suppliers to Chilean consumers

• Cross-border ecommerce sales of low-value goods (effective October 25, 2025)

Exempt Supplies

The following transactions are exempt from IVA in Chile:

• Exports of goods

• Freight services

• Real estate transactions (in most cases)

• Education services

• Tickets to sporting and cultural events

• Used cars and trucks

• International passenger transport

Additional Taxes on Specific Goods

Certain goods are subject to additional luxury or excise taxes on top of the standard IVA rate. These additional taxes range from 15% to 50% and apply to items such as jewelry and luxury goods.

Digital Services Taxability

Non-resident providers of digital services to Chilean consumers must charge 19% IVA. The following types of digital services are subject to IVA in Chile:

• Streaming and subscription services

• Software and application downloads

• Online advertising

• Cloud computing services

• Intermediary or marketplace services

B2B digital service transactions are not subject to IVA by the supplier. Instead, the Chilean business customer accounts for IVA through the reverse charge mechanism.

Low-value goods (cross-border ecommerce)

Effective October 25, 2025, goods sold remotely to Chilean consumers with a total value (including shipping) of USD 500 or less are subject to 19% IVA at the point of sale. To avoid double taxation, these goods are exempt from IVA at the border if IVA was already collected at the time of sale.

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