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Chile’s tax authority, the Servicio de Impuestos Internos (SII), has begun applying its “change of taxpayer” mechanism for Digital VAT to online betting platforms that failed to register under the simplified regime for foreign digital services.
According to the SII, 25 online betting platforms registered between 14 and 15 July after the Service warned that, from 15 July, unregistered operators offering remote betting, gambling and casino services to customers domiciled or resident in Chile would face enforcement under Exempt Resolution No. 94 of 15 July 2026. That resolution sets out a list of platforms identified through transaction data supplied by banks, non‑bank financial institutions and payment processors.
Under the change‑of‑taxpayer scheme, responsibility for collecting the 19% VAT on each transaction shifts from the platform to the payment‑service operator. Payment providers must withhold VAT on every relevant transaction and remit the aggregated amount monthly to the public treasury.
The Sub‑Director for Enforcement, Carolina Saravia, has indicated that the data now received from payment‑service providers allows the SII to monitor registrations and verify that Digital VAT is being correctly paid. She noted that the authority is using automated processes designed to strengthen compliance with tax obligations and increase direct revenue from the application of the tax.
The SII also plans to review information submitted by platforms during registration and cross‑check declared Digital VAT against transaction data from payment providers, drawing on experience built up since Chile first extended VAT to foreign digital services in 2021.
Chile’s tax authority first moved in June 2026 to create a Digital VAT registration and payment system for foreign online betting and casino platforms through Exempt Resolution 69, maintaining that the measure was intended to collect VAT on digital services already subject to Chilean tax law rather than determine the legality of online gambling.
Opposition senators argued the move effectively legitimised an industry they regarded as illegal and summoned SII director Jorge Trujillo to defend the resolution before the Senate’s Economic Affairs Committee.
Building on that framework, Exempt Resolution 94 subsequently targeted platforms that failed to register by applying a “change-of-taxpayer” mechanism, making payment-service providers responsible for withholding and remitting the 19% VAT on transactions, with enforcement based on information supplied by banks and payment operators to identify non-compliant platforms.
