Import Tax in Chile: VAT, GST, and Sales Tax on Imported Goods

When importing goods into Chile, it's essential to understand the difference between duty and tax. Duty refers to the customs duty payable on the imported goods, which varies by product. On the other hand, tax, specifically VAT (Value-Added Tax) at a rate of 19%, is a consumption tax applied to the importation of goods. This tax is levied on the value of the imported goods, including the duty payable.

In Chile, VAT at 19% is applied to the importation of goods. This means that when goods are imported, the importer is required to pay VAT on the value of the goods, in addition to any applicable duty. The VAT is calculated on the tax base, which includes the value of the goods, plus any duty payable, and is typically paid in CLP (Chilean Pesos).

The tax base for VAT calculation on imports in Chile is the sum of the CIF (Cost, Insurance, and Freight) value of the goods, plus any duty payable. This means that the VAT at 19% is applied to the total value of the goods, including the cost of transportation and insurance, as well as any applicable duty. The resulting amount is then paid in CLP.

In Chile, VAT at 19% applies to most imports, but there are certain exemptions. For example, certain goods such as food, healthcare products, and educational materials may be exempt from VAT or subject to a reduced rate. Additionally, imports by certain entities, such as diplomatic missions or international organizations, may also be exempt from VAT. It's essential to consult with a trade compliance expert to determine if any exemptions apply to your specific importation.