Chile Value Added Tax (VAT) Frequently Asked Questions

Chilean value added tax to be charged by Amazon to Chile-based sellers on the provision of remote electronic services

Chilean value added tax (VAT) collection on remote services to expand on August 1, 2020, for Chilean residents.

Chilean Government has implemented new legislation requiring non-resident companies who provide “remote services” to begin collecting Chilean VAT on these services when provided to Chilean residents or persons not registered for VAT. In this context, remote services provided by Amazon are the Selling on Amazon fees (listing/referral services), Advertising fees, and monthly subscription fees. The new rules take effect on August 1, 2020.

Unless a Chile-based seller has provided Amazon with its Chilean VAT ID as evidence that it is VAT-registered in Chile, the rule requires Amazon to collect and remit Chilean VAT at a standard rate of 19% on the Selling on Amazon fees, Advertising fees, and monthly subscription fees.

To provide Amazon with your Chilean VAT ID:

1. Login to Seller Central.
2. Under Settings, click Account Info.
3. In the section Tax Information, click VAT information.
4. From the list of countries, select Chile.
5. Type your 9-digit Chilean VAT ID, for example, ‘XX.XXX.XXX-X’.
6. Click I accept and acknowledge all conditions set out in the Tax registration agreement.
7. Click Save.

To learn more, or understand how this new regulation impacts your Selling on Amazon account, refer to the Chilean National Tax Services website

How does Chilean VAT apply to my Selling account?

If you are a resident of Chile or your company is based there, Selling on Amazon fees (listing/referral services) charged to your selling account are subject to Chilean VAT unless you are VAT-registered and have provided Amazon with a Chilean VAT ID as evidence that you are VAT-registered in Chile.

I am no longer a resident of Chile, and I have updated all my information to reflect my current address. Can Amazon refund previously charged Chilean VAT to my selling account?

Amazon is required to charge and remit Chilean VAT based on the information in your selling account. At the time the VAT was calculated and collected, Amazon had enough information to associate your account with Chile. Amazon cannot refund Chilean VAT without a valid Chilean VAT ID on file during time of charge.

How do I obtain a Chilean VAT ID?

You can register for a Chilean VAT ID online by visiting the National Tax Services website or consult your tax and legal advisor.

I am not a Chilean resident; will Amazon charge my account with Chilean VAT on fees?

If you are not a resident of Chile, Selling on Amazon fees through your selling account will not be subject to Chilean VAT collection. Consult your tax advisor to help you understand if you have any VAT obligations in Chile.

How is Chilean VAT Charged?

Amazon will charge Chilean sellers a standard rate of 19% VAT on Selling on Amazon fees, Advertising fees, and monthly subscription fees if the seller does not have a valid Chilean VAT ID on file as evidence that it is VAT-registered.

Amazon will begin calculating and collecting Chilean VAT on Selling on Amazon fees effective, August 1, 2020.

Why is Amazon continuing to collect Chilean VAT when I have provided a valid Chilean VAT ID?

Amazon will not calculate and collect Chilean VAT if you have provided a valid Chilean VAT ID as evidence that you are VAT-registered in Chile.

However, there may have been VAT collected on the orders due to timing. Amazon calculates Chilean VAT on fees when an order is placed, and charges it to the selling account when the order is shipped. Therefore, Chilean VAT may have been collected on fees for orders placed prior to the time you provided your Chilean VAT ID.

I updated my information to reflect my current address, which is outside Chile. Why is Amazon continuing to collect Chilean VAT?

Amazon calculates Chilean VAT on fees when an order is placed, and collects it when an order is shipped. If the information you provided at the time of shipment indicated that you were a resident of Chile, then Chilean VAT will have been collected. This might have occurred if there were pending orders before you updated your current address and payment information.

Go to Seller Account Information and review each section to ensure that all of your information is complete and accurate.

How do I receive a refund for previously-charged Chilean VAT on my selling account?

You may request a refund for previously-charged Chilean VAT once you have provided Amazon with a valid Chilean VAT ID as evidence that you are VAT-registered in Chile.

To request a refund:

1. Submit your Chilean VAT ID to Amazon by following the process listed below.
2. Contact Amazon Seller Support through the Contact us form.
   
   1. Choose Selling on Amazon.
   2. Click Other issues and then click Tax Questions.
   3. Under What are your tax questions, request a refund of the Chilean VAT charged to your selling account.
3. You will receive an update for your case when your request has been processed. The update will provide the estimated date when you can expect to receive a refund in your selling account if your request was approved.

Will Amazon provide me with an invoice for any Chilean VAT collected on Selling on Amazon fees?

Amazon is not required to issue tax invoices under the Chilean legislation. All monthly activity can be found in date range reports. You can view these reports by going to Seller Central > Reports > Payments > Date Range Reports and selecting a transactional report for a particular timeframe.

Can Amazon help me with my tax return?

While we are committed to helping sellers, we do not provide tax advisory or compliance services. Please contact a tax advisor for more information related to tax returns.