Chile Expands VAT Rules to Cover Foreign Online Gambling Platforms Under New Digital Tax Framework

Chile has broadened the scope of its simplified value-added tax (VAT) regime for digital services to now include foreign-based online gambling, casino, and betting platforms that supply services to consumers in Chile.

The change was formalized through Resolution No. 69, issued by the Chilean Internal Revenue Service on June 2.

Under the updated framework, non-resident operators providing online gambling services—including casino games and betting platforms—to individuals in Chile who are not registered for VAT are now explicitly brought within the existing VAT system that already applies to foreign digital service providers.

The resolution requires these overseas digital gambling operators to register for VAT in Chile and to comply with the same filing and payment obligations imposed on other non-resident providers of digital services. VAT will be charged on the full amount received in exchange for the services supplied to Chilean users.

The tax authority also indicated that operators may be removed from the simplified VAT regime if they fail to submit the required VAT returns or do not properly declare and pay VAT on revenues collected from Chilean users who are not VAT-registered.

In addition, the resolution introduces a retroactive compliance requirement. Non-resident operators that have provided relevant services during the previous 36 months are obligated, at the time of registration, to file the corresponding VAT returns and settle any outstanding VAT liabilities associated with that period.

The measure further extends Chile’s regulatory and tax reach over offshore digital gambling activity, reflecting a wider trend across Latin American jurisdictions where governments are tightening oversight of foreign online betting and casino operators.

For international gambling platforms, the rule change means that offering services to customers in Chile from outside the country now carries clearer and more formalized tax compliance responsibilities, even in cases where the operator does not maintain any physical presence in Chile.

From Chile’s perspective, the extension of VAT obligations to foreign gambling services aligns with a broader policy approach aimed at incorporating digital gambling activity into the formal tax system, while regulatory and legislative discussions continue regarding the longer-term supervision and structure of online betting and casino markets.

By fLEXI tEAM