SII applies 19% VAT withholding to unregistered betting platforms

Chile’s tax authority said payment providers must withhold 19% VAT on each transaction involving unregistered online betting platforms. The mechanism was due to begin on 15 July, with the tax paid into the treasury monthly.

The SII formalised the measure in Resolution No. 94 on 15 July 2026. The resolution listed platforms that had not registered and would therefore be subject to the withholding mechanism. bet365, PokerStars, Betcris and LeoVegas are among the platforms listed as unregistered.

Between 14 and 15 July, 25 online betting platforms joined the simplified VAT regime, the SII said. The regime handles tax declarations and payments for digital services supplied to users domiciled or resident in Chile.

The SII said the measure was intended to ensure tax was paid correctly on remote betting, gambling and casino services supplied by foreign platforms. It uses information from banks, non-bank entities and payment providers to identify remote betting, gambling and casino platforms without a domicile or residence in Chile. The SII has used debit, credit and prepaid card information, among other sources, to identify betting platforms operating in the country.

Chile does not yet have a complete licensing framework for online betting. Carolina Saravia, the SII’s deputy director of audit, said automated processes would help monitor registration and check that platforms paid the tax correctly.

The SII will review the information submitted by the 25 registered platforms. Once that information is confirmed, it will assess whether their VAT declarations and payments match activity identified through payment provider data.