Chile’s New tax Law: VAT on Shein,Temu,and AliExpress purchases Takes Effect in 2025
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Chile’s Internal Revenue Service (SII) has announced a significant change in tax policy that will impact online shoppers using platforms like Shein,Temu,and AliExpress.Following the implementation of the Tax Compliance law (Ley 21.713),all transactions made on these international e-commerce sites will now be subject to a 19% Value Added Tax (VAT).
this new regulation,aimed at curbing tax evasion,marks a departure from previous policies that exempted purchases under $41 from VAT. Under the updated law, even small transactions will now incur the tax, irrespective of the purchase amount.
Though, the law also introduces a streamlined process for VAT payments on imported goods worth up to $500. This simplification eliminates customs duties for items within this price range, making the process more efficient for consumers.
“It is good news for people who buy abroad through these platforms because now,since you do not have to pay the tariff and the platforms retain the VAT,they will send it directly to your home. I mean, it’s going to be much more expeditious.”
javier Etcheberry, Director of the SII
When Will VAT Be Applied to Shein, Temu, and AliExpress Purchases?
The SII has confirmed that the new VAT policy will take effect 12 months after the law’s publication. This means that starting October 24, 2025, all purchases made on platforms like Shein, Temu, and AliExpress will automatically include the 19% VAT at the time of transaction.
For consumers, this change will be seamless, as the tax will be automatically calculated and included in the final price. Though, the method of payment will depend on whether the platform has registered with the SII.
“The platform can be registered voluntarily with the Internal Revenue Service. When the person buys the product,they are charged 19% on that purchase and then it is indeed the platform that pays the tax in our country.”
Carolina Saravia,Deputy Director of Inspection at the SII
If a platform has not registered with the SII,the duty for collecting the VAT will fall on the buyer’s bank card. In such cases, the 19% tax will be charged directly to the buyer’s account.
This dual system ensures that all transactions are compliant with the new tax regulations, regardless of the platform’s registration status.
What Does This Mean for Chilean Shoppers?
For Chilean consumers, the new VAT policy represents both a challenge and an chance. While the added tax will increase the cost of purchases,the streamlined process for VAT payments on low-value items promises to make international shopping more convenient.
The SII’s efforts to modernize tax collection reflect a broader global trend toward greater clarity and accountability in e-commerce.as more countries adopt similar measures, Chile’s approach could serve as a model for other nations looking to balance consumer convenience with fiscal responsibility.
With the implementation date set for October 2025, both consumers and businesses have time to adapt to the new regulations. The SII’s clear communication and proactive approach to enforcement are expected to ease the transition and ensure compliance across all sectors.
As Chile moves forward with this landmark tax reform, the impact on e-commerce and consumer behavior will be closely watched. For now, the focus remains on ensuring a smooth and efficient implementation process that benefits both the government and the public.
Send it directly to your home. I mean, it’s going to be much more expeditious.”Javier Etcheberry, Director of the SII
Interview: understanding Chile’s New VAT Policy on International E-Commerce
In this exclusive interview, we sit down with Carolina Saravia, Deputy Director of Inspection at the Chilean Internal Revenue Service (SII), to discuss the implications of Chile’s new VAT policy on international e-commerce platforms like Shein, Temu, and AliExpress. The policy, set to take effect in October 2025, introduces a 19% VAT on all transactions made on these platforms, marking a important shift in tax compliance for Chilean consumers and businesses.
The Purpose Behind the New VAT Policy
Senior Editor: Ms.Saravia, thank you for joining us today.Can you explain the primary goal of this new VAT policy on international e-commerce platforms?
Carolina Saravia: Of course. The main objective of this policy is to ensure tax compliance and curb tax evasion in the e-commerce sector. Previously, purchases under $41 were exempt from VAT, wich created a loophole for tax avoidance. By applying a 19% VAT to all transactions, regardless of the purchase amount, we aim to create a fairer and more obvious system.
Streamlining VAT Payments for Consumers
Senior Editor: The policy also introduces a streamlined process for VAT payments on imported goods worth up to $500. Can you elaborate on how this will benefit consumers?
Carolina Saravia: Absolutely. Under the new system, consumers purchasing items valued up to $500 will no longer have to pay customs duties. This simplification makes the process more efficient and less cumbersome for shoppers. Additionally, platforms like shein, Temu, and AliExpress will retain the VAT and send it directly to the SII, ensuring a smoother and faster delivery process for consumers.
The role of Platform Registration with the SII
Senior Editor: How does the registration of these platforms with the SII affect the VAT collection process?
Carolina Saravia: Platforms can voluntarily register with the SII, which means they will collect the 19% VAT at the time of purchase and remit it to our agency. This ensures that the tax is paid directly by the platform, simplifying the process for consumers. Though, if a platform is not registered, the duty for paying the VAT falls on the buyer’s bank card. This dual system ensures compliance regardless of the platform’s registration status.
Implications for Chilean Shoppers
Senior Editor: What does this new policy mean for Chilean consumers who frequently shop on international e-commerce platforms?
Carolina Saravia: For consumers, this policy represents both a challenge and an opportunity. While the added VAT will increase the cost of purchases, the streamlined process for low-value items makes international shopping more convenient. Additionally, the SII’s proactive approach to modernizing tax collection reflects a global trend toward greater clarity and accountability in e-commerce, which could serve as a model for other countries.
Preparing for Implementation in 2025
Senior Editor: With the implementation date set for October 2025, what steps are being taken to ensure a smooth transition for both consumers and businesses?
Carolina Saravia: The SII is committed to clear communication and proactive enforcement to ease the transition. We are working closely with e-commerce platforms to ensure they understand their obligations under the new law. Additionally, we are providing resources and guidance to consumers to help them adapt to the changes. Our goal is to create a seamless and efficient implementation process that benefits both the government and the public.
Senior Editor: Thank you, Ms.Saravia, for your valuable insights. This new VAT policy is undoubtedly a landmark change for Chile’s e-commerce landscape, and we look forward to seeing it’s impact in the coming years.
Carolina Saravia: Thank you for having me. It’s an exciting time for tax reform in Chile, and we are confident that this policy will contribute to a more transparent and efficient e-commerce environment.
As Chile moves forward with this landmark tax reform, the impact on e-commerce and consumer behavior will be closely watched. For now, the focus remains on ensuring a smooth and efficient implementation process that benefits both the government and the public.
