Chilean Value Added Tax (VAT) | Frequently asked questions
Last updated: April 28, 2021
Please note: this article has been prepared for informational purposes only. It is not intended to provide, and should not be relied on as tax advice. For any questions you should consult your own tax and/or legal advisors.
If your business is located in Chile, learn how HubSpot handles VAT and how you can update HubSpot with your VAT-related information.
Value Added Tax (VAT) is generally due when goods and/or services are sold and supplied. VAT applies to most goods and services that are bought and sold for use or consumption in Chile. Generally, VAT is invoiced by the supplier of goods or services, then collected from the customer. The supplier then reports and remits the collected VAT to the tax authorities.
Below are frequently asked questions related to VAT for customers in Chile.
Who is liable to pay VAT?
Whether you're subject to VAT for HubSpot's services depends on whether you carry out activities that are subject to VAT in Chile.
HubSpot will collect VAT if your business doesn’t carry out activities that are subject to VAT in Chile. If your business does carry out activities that are subject to VAT in Chile, you'll need to self-assess VAT under the reverse charge mechanism.
You’re liable to pay VAT unless you provide HubSpot with the following information:
1. a Chilean address as a your primary company address; and
2. your Tax ID number; and
3. a confirmation that you’re a VAT taxpayer in Chile.
VAT will be charged by HubSpot if the details for points 1 and 2 are not provided in a timely fashion.
Use the chart below to determine if you're liable to pay VAT:
How do I update HubSpot with my VAT information?
To update HubSpot with your VAT information, send your Chilean Tax ID number and taxpayer status to email@example.com. Once your details are confirmed with the Chilean tax authority, VAT will no longer be assessed to your account in future billing. For VAT billing changes to apply to your next bill, you must notify HubSpot within 5 business days before your next billing date.
HubSpot cannot retroactively credit or refund VAT from any current or previously issued invoices.
What happens if I don’t have a Tax ID Number?
A TAX ID Number is a unique 9-digit number XX.XXX.XXX-X) that identifies a person or entity
as being registered for VAT and other tax purposes in Chile.
If you’re unable to provide a valid Tax ID Number or if you don’t confirm your VAT taxpayer status (as either a VAT taxpayer or Non-VAT taxpayer), HubSpot will charge, collect, & remit Chilean VAT to the Chilean tax authorities on its services.
Why is there a VAT charge on my HubSpot Invoice?
HubSpot is required to collect and remit Chilean VAT for customers who don't carry out activities that are subject to VAT in Chile.
If your business carries out activities that are subject to VAT in Chile, you may need to self-assess VAT on the services purchased from HubSpot.
What if I carry out activities subject to VAT in Chile and I forget to provide a Chilean Tax ID number & Taxpayer Status?
Reach out to firstname.lastname@example.org with your Chilean Tax ID number and taxpayer status as soon as possible. HubSpot will then confirm your details with the Chilean tax authority and update your account. With a valid VAT number and taxpayer status on file, VAT will not be assessed to your account in future billing. HubSpot cannot retroactively credit or refund VAT from the current or past invoices.
Is there any threshold for VAT on electronically supplied services (ESS)?
No. VAT applies to all sales of HubSpot’s services in Chile where the customer does not carry out activities that are subject to VAT in Chile.
Are there any exemptions for charities under which VAT may not be charged?
No. VAT will be charged on all services made to charities unless you provide a Tax ID Number and confirm that you’re a VAT taxpayer.
Does HubSpot provide VAT exemptions for services that are not subject to VAT?
If you provide evidence that you carry out activities that are subject to VAT in Chile by providing a Tax ID Number and confirming they are a VAT taxpayer, you will not be charged VAT by HubSpot. There are currently no other exemptions available.
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