For global SaaS platforms and digital giants, Chile is Latin America’s most mature digital economy—and its tax authority, the SII, is equally advanced. Chile was a pioneer in taxing digital services, enforcing a strict 19% VAT rule. The difference between charging this tax or applying a B2B exemption lies entirely in the data: verifying the client’s RUT and their specific taxpayer status. This guide delivers the strategic intelligence you need to navigate Chile’s Tax Identification Number landscape, transforming compliance from a regulatory burden into a revenue enablement engine.
Introduction
The Chilean Servicio de Impuestos Internos (SII) operates a sophisticated digital VAT regime. For international businesses, particularly in SaaS and E-Invoicing, the challenge is distinguishing between B2B and B2C customers. Non-compliance—failing to validate if a client with a RUT is also a VAT taxpayer—forces you to charge 19% VAT on B2B sales unnecessarily, making your product more expensive than competitors. Conversely, accurate ID validation allows you to legally apply the B2B exemption, protecting your profit margins and offering better pricing to corporate clients. This expert guide clarifies the Chilean TIN system, ensuring your Client Onboarding is built for financial success.
