Overview

Chile has introduced a Value Added Tax (VAT) on low-value imported goods, requiring a 19% tax on most products valued at USD 500 or less that are shipped into the country from abroad. Amazon will handle the calculation, collection, and remittance of this tax on qualifying orders, but sellers must ensure their account information and shipping documentation are accurate to avoid customs delays and potential penalties.

Key Points / What Sellers Need to Know

• 19% VAT on imports under USD 500 — Any item shipped from outside Chile to a Chilean address with a value of USD 500 or less will have a 19% VAT applied automatically by Amazon at checkout.
• Items over USD 500 follow existing rules — Products valued above USD 500 remain subject to standard customs duties and import VAT as before.
• Amazon collects and remits the tax — Sellers are not responsible for calculating or remitting Chile LVIG VAT. Amazon handles this end-to-end for orders placed through its stores.
• Ship-from location must be accurate — Sellers must update their ship-from address in Seller Central to reflect the actual location their inventory ships from. Incorrect information could result in VAT being calculated incorrectly.
• Per-item threshold applies — The USD 500 threshold is evaluated on each individual item, not on the total order value. Multiple items in a single order are assessed independently.

How the VAT Is Calculated

The 19% VAT is computed on the total cost to the customer for each qualifying item. This includes the product price, shipping and handling fees, and any additional charges, minus applicable discounts. The VAT amount will appear on the order details page in Seller Central, so sellers can see exactly how much tax was applied to each transaction. Orders subject to the LVIG VAT will be labeled with a "Facilitator" designation under the tax collection section of the order details, making it straightforward to identify which sales were affected.

Shipping Requirements and Customs Documentation

Sellers fulfilling their own orders to Chile must follow specific packaging and documentation rules to ensure shipments clear customs without issues. Items valued at USD 500 or less must be shipped separately from items above that threshold. Products requiring special import permits or those subject to special taxes at import must also be packaged in separate shipments.