Skip to main content

Understanding Chile VAT for Low-Value Shipments

Chile applies a simplified VAT process to imported parcels under $500 USD. This article explains how VAT is calculated and when this shipping channel applies.

Updated this week

Chile updated its VAT policy for low-value imported parcels effective October 25, 2025. Under this policy, shipments with a parcel value below $500 USD follow a simplified VAT process with no customs duties. This article explains how the VAT is calculated, who this shipping channel applies to, and what information is required when placing an order.

Things to keep in mind

  • Always declare the parcel value accurately. Under-declaration may result in customs detention, destruction, or other penalties.

  • We do not assume responsibility for customs-related consequences caused by incorrect or understated declared values.

  • VAT is calculated and withheld during order placement, not at delivery.

Who does this shipping channel apply to

This shipping channel is only available if all of the following conditions are met:

  • The parcel value is below $500 USD

  • The shipment does not use a platform tax number

  • The shipment is sent under a Delivered Duty Paid (DDP) service, where the sender covers VAT

If any of these conditions are not met, this channel does not apply, and a different customs process may be required.

How VAT is calculated and charged

Chile applies a uniform VAT rate of 19% to qualifying low-value parcels. Customs duties are exempt.

VAT is calculated using the CIF value of the shipment:

  • VAT equals CIF multiplied by nineteen percent

For DDP shipments:

  • The sender bears the VAT

  • VAT is withheld at 19% of the declared value at the time of order placement

  • No handling or processing fee is added

Information required when placing an order

To avoid delays or customs issues, the following information is required at checkout:

  • An accurately declared value greater than $1.00 USD

  • Recipient tax number in the format of 7 to 8 digits plus 1 digit or the letter K

  • Recipient phone number

Accepted phone number formats include:

  • +56 six followed by the number

  • 56 followed by the number

  • Local 9-digit number

Did this answer your question?