Chile’s SII applies 19% IVA to offshore betting platforms
Regulation2 min read
Chile’s Servicio de Impuestos Internos introduced a simplified registration system for offshore betting, gaming and online casino platforms in June 2026. Registered platforms must pay 19% IVA, while Luis Cordero, external legal adviser to the ACCJ, argued that the process exceeds the SII’s powers and does not resolve operators’ authorisation status.
Chile’s SII introduced a simplified registration system in June 2026 for offshore betting, gambling and online casino platforms. Registered companies must declare and pay digital VAT at a general rate of 19%.
In an interview, Luis Cordero, external legal adviser to the Chilean Association of Casinos and Games (ACCJ), said the process effectively gave platforms without a gambling licence a way to regularise their position. Cordero, a former justice and security minister, said SII had exceeded its powers. SII has said tax collection does not authorise platforms to operate, regularise their gambling status or replace the powers of other public bodies.
Platforms that provided services during the preceding 36 tax periods must pay outstanding taxes. The taxable base is normally calculated on customers’ wagers in Chile, with deductions allowed when an operator can reliably substantiate prizes paid.
If a platform does not register voluntarily, SII can require banks, card issuers and other payment providers to withhold VAT on transactions and remit it to the treasury.
Cordero said registration creates an appearance of administrative recognition while Chilean courts have ordered internet providers to block unauthorised betting sites. He cited risks involving children, education, public safety and movements of funds. He said payment gateways needed particular attention because authorities must know how funds move and where they ultimately go.
Cordero said future regulation should define operating authorisation, licensing, corporate identity, tax domicile and fund traceability. He called for measures addressing gambling addiction, excessive betting and advertising.
The ACCJ asked the Comptroller General to examine the SII measure and sought reconsideration after the body declined to issue a substantive ruling. No court or oversight body has declared the tax mechanism illegal. Cordero said the dispute could go to court if the administrative process did not resolve it.