Chile’s tax authority, the Servicio de Impuestos Internos (SII), has begun enforcing its Digital VAT rules on online betting platforms that failed to register under the country’s simplified tax regime for foreign digital service providers.
The latest measures shift the responsibility for collecting value-added tax from non-compliant operators to payment service providers, strengthening enforcement of Chile’s digital taxation framework.
Payment Providers Required to Collect VAT
Under Exempt Resolution No. 94, online betting platforms that did not register by the required deadline are now subject to a “change of taxpayer” mechanism.
Instead of the platform collecting the tax, payment service providers must withhold the 19% Digital VAT on each eligible transaction and remit the funds to the Chilean treasury on a monthly basis.
The SII said the enforcement action targets operators identified through transaction data supplied by banks, payment processors, and other financial institutions.
Registration Increases Following Warning
The tax authority reported that 25 online betting platforms completed their registration between July 14 and 15 after receiving notice that enforcement would begin on July 15.
Officials said information collected from payment service providers will allow the SII to monitor registrations, verify VAT payments, and identify discrepancies between declared taxes and transaction records using automated compliance systems.
Digital Tax Framework Expands
Chile introduced a Digital VAT registration system for foreign online betting and casino operators through Exempt Resolution 69 in June 2026. The SII said the measure was designed to ensure VAT collection on digital services already covered by Chilean tax law rather than determine the legal status of online gambling.
The latest enforcement measures build on that framework by targeting platforms that failed to register, while increasing oversight through transaction data provided by financial institutions and payment operators.
