Understanding Chile Nexus Rules

What is Nexus in Chile?

In Chile, nexus refers to the connection a business has with the country that creates an obligation to collect and remit IVA. Unlike U.S. states, which use economic thresholds to define nexus, Chile has no minimum registration threshold. This means that your very first taxable sale in Chile triggers a registration obligation.

Who is Required to Register?

Any business, domestic or foreign, that makes a taxable supply in Chile must register for IVA with the SII. There is no minimum revenue or transaction threshold. This applies to sellers of physical goods, providers of services, importers, and suppliers of digital services to Chilean consumers.

Physical Nexus

A business establishes physical nexus in Chile by having a presence such as an office, branch, agency, warehouse, or employees operating in the country.

Economic Nexus for Digital Services

Since July 1, 2020, non-resident providers of digital services to Chilean consumers are required to register and collect IVA. This applies regardless of transaction volume. Business-to-business (B2B) transactions are excluded from this obligation and are instead handled by the Chilean customer through the reverse charge mechanism.

Nexus for Cross-Border Ecommerce (effective October 25, 2025)

As of October 2025, new rules apply to non-resident sellers and digital platforms selling low-value goods (under USD 500) to Chilean consumers. Digital intermediation platforms are now deemed the seller for IVA purposes and are responsible for collecting and remitting IVA at the point of sale.

How Kintsugi Helps

Kintsugi Intelligence monitors your transactions to determine when and where you have triggered an IVA obligation in Chile, so you are never caught off guard.

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