VAT on Shein and Temu purchases: how imports are changing

  • Starting October 25, all remote purchases will be subject to 19% VAT, with no exemption for low value.
  • For amounts under USD 500, only VAT is charged; above this threshold, a 6% tariff is added.
  • Platforms and operators must register with the SII; otherwise, the process will be transferred to Customs and may be delayed.
  • VAT is calculated on the total transaction amount (product + shipping) and does not apply to purchases made before October 25.

VAT on imports for international purchases

The new Tax Compliance Law ends the exemption for low-value orders and changes the way you shop at foreign online stores. As of Saturday October 25, any order placed on platforms such as Shein and Temu or AliExpress will face the collection of the 19% VAT in Chile.

The collection and control will be in the hands of the Servicio de Impuestos Internos (SII) and the National Customs Service, with a special focus on making the process more agile and transparent. The Taxpayer Ombudsman's Office (Dedecon) insists on offering clear information for consumers and entrepreneurs and in respecting their rights.

When it comes into effect and what purchases it affects

The change applies from October 25 and will not have retroactive effect: Orders placed before that date will not be affected by the change. The measure eliminates the previous exemption for purchases under $41.

El 19% VAT It will be calculated on the total of the operation, that is, value of the product plus the cost of shippingThis covers remote purchases on foreign platforms, regardless of the cart amount.

How the tax will be collected

Remote sellers of low-value goods and logistics operators must register in a simplified regimen through the SII portal. With this registration, the VAT will be added automatically upon completion of the purchase, facilitating the entry of packages into the country.

If a platform is not registered, the order will go to the usual regime of Customs: the corresponding VAT will be charged and, where applicable, tariffsIn these cases, the buyer may be required to make payment before the shipment is released, at the risk of additional delays in delivery.

Sections and loads: under and over $500

The standard differentiates by order amount, maintaining VAT in all cases and adding tariff if applicable. The basis for calculating the 19% VAT includes the product and shipping.

  • Purchases less than USD 500: applies exclusively to the 19% VAT about the total.
  • Purchases over USD 500: In addition to VAT, a tax is added 6% customs tariff on the declared value.

Guiding examples: a camera of $600 would be around $720,84 after applying tariff and VAT; in an order of $400, the final amount would be approximately $476 by charging only VAT.

Recommendations for shopping without surprises

  • Check if the store or logistics operator is registered with the SII; thus, the tax will be charged at checkout.
  • Check the conditions of your card (commissions, exchange rate) and how they report tax collection.
  • If the platform is not registered, consult your bank to confirm. how and when VAT will be applied.
  • Plan international orders considering the new tax scenario and possible dispatch times.
  • In case of double VAT chargingYou can request a refund of the overpayment by providing proof of the first payment with the document issued by Customs.
  • In case of undue charges or lack of information, go to Dedecon at www.dedecon.cl or at the offices of ChileAttends.

What's happening with Amazon, couriers, and Correos de Chile?

Many platforms and express courier services already do the automatic tax collection at the time of payment, so the change should not excessively alter your operations.

When shipping is managed through Chilean Post Office, the buyer usually receives a notification with the possible tax charge, the amount to be paid and documents required, along with the procedure to complete the process.

It's key save invoices, payment receipts and screenshots from the purchasing process. These supporting documents will be necessary if Customs requests backups or if refunds for duplicate payments need to be processed.

With the elimination of the exemption under 41 dollars and the general application of the 19% VAT, the import of purchases on Shein, Temu and similar platforms is entering a more orderly and demanding stage. check the registration in the SII, calculate total costs (product and shipping) and have Dedecon's help channels at hand to resolve incidents without wasting time.

Temu and Shein
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