ProntoPaga to suspend payment services for betting sites owing digital VAT in Chile

ProntoPaga, a Chilean payments company, announced that it will suspend its services to online betting platforms registered with the Servicio de Impuestos Internos (SII) that do not pay digital VAT. The announcement was made as the tax deadline passed on Tuesday 20 October.

Teresita Valverde, legal adviser at ProntoPaga, said the policy applies without exceptions and that the company will not allow its services to be used by companies that fail to meet their tax obligations. ProntoPaga also said clients that meet their tax obligations can continue using its services without difficulty.

The SII set out through Resolution No. 69 that online betting platforms without domicile or residence in Chile had to register under the simplified regime for foreign providers of digital services and begin collecting and declaring the corresponding VAT on services provided to Chilean users. As a result, 25 international operators completed their registration with the SII to begin meeting the tax obligation.

Through Exempt Resolution No. 94, the SII updated the list of foreign taxpayers subject to the VAT "cambio de sujeto" mechanism, under which issuers of credit cards, debit cards and other payment methods must withhold and remit the corresponding tax when platforms are not covered by the simplified regime. Under this scheme, payment operators must withhold 19% VAT on each transaction made by users and remit it monthly to the treasury. The withholding began to apply on 1 August 2026.

The SII said the enforcement mechanism draws on experience from the implementation of VAT on digital services in 2021 and on information provided by banks and payment operators, which allows it to identify platforms transacting with users located in Chile. During 2025, the SII found that the main online betting platforms together recorded more than four million transactions in the country.

A bill to regulate online betting continues its passage through the Chilean Congress, with differences over the model the country should adopt and the conditions platforms would have to meet to operate legally. The Executive has until 26 October to submit its indications to the bill.