Online betting platforms: how VAT is calculated in Chile and the application of tax inspection measures by the SII

How is the taxable base for entertainment services provided by online gambling platforms or casinos determined?

By means of Official Letter No. 1,658, dated 8 July 2026, the Internal Revenue Service clarified how the taxable base for VAT applicable to betting, gambling and casino services provided remotely by foreign platforms to users domiciled or resident in Chile should be determined.

The ruling focuses on defining what is meant by ‘consideration received for the relevant services’, a term used in Article 35D of the Sales and Services Tax Act (LIVS) to establish the basis on which foreign providers subject to the simplified regime must declare and pay VAT.

In this context, Exempt Resolution No. 69 of 2026 clarified how the taxable base for these services should be determined. In particular, it provides that the tax applicable to entertainment services provided via online gaming or betting platforms must be calculated on the total amount of consideration received as remuneration, regardless of its nature.

On the basis of this rule, the SII clarified that, where the taxpayer can reliably demonstrate that the remuneration received corresponds exclusively to the difference between the amounts wagered and the prizes paid out, the taxable base shall consist of that margin, determined in the relevant tax period.

Conversely, if the taxpayer is unable to provide conclusive evidence of the consideration actually received as remuneration for the provision of their services, VAT must be applied to the total amount staked by users.

Auditing, registration and change of taxable person.

The Official Letter recalls that Article 35(I) of the LIVS empowers the SII to use the technological means of audit at its disposal and to request information enabling it to verify the correct fulfilment of tax obligations by foreign service providers.

These powers took on particular significance after, on 13 July 2026, the SII reported that no online betting platform had voluntarily registered for the declaration and payment of Digital VAT in accordance with Exempt Resolution No. 69 of 2026, which came into force on 2 June of that year.

In light of this situation, the agency announced that it would apply the mechanism for changing the liable party for digital VAT in respect of those platforms that remained unregistered, with effect from 15 July 2026.

Following this announcement, 25 platforms registered with the SII between 14 and 15 July 2026 to declare and pay digital VAT. The list includes platforms associated with, amongst others, Betsala, Jugabet, Novibet, Betway, Coolbet, Epic Bet, Betano and Betsson.

With regard to the platforms that failed to comply with this obligation, the SII, through Exempt Resolution No. 94 of 15 July 2026, established the list of operators subject to the change in the liable party. Under this mechanism, the payment service provider will be responsible for withholding 19 per cent VAT on each transaction and remitting it to the tax authorities on a monthly basis.

The platforms included on this list are:

• BET365
• STARS
• 1WIN.COM
• ELECTRAWORKS
• THELOTTER
• POKERSTARS
• GGPOKER
• BETCRIS
• LEOVEGAS
• ROOBET

According to the agency, this measure aims to “ensure the correct payment of tax by betting, gambling and casino services provided remotely via digital platforms that have no registered address or residence in Chile”. To this end, the SII relies on information it receives from banks, non-banking institutions and payment service providers, particularly that relating to transactions carried out using credit, debit and prepaid cards.

Registration, however, does not mark the end of the audit process. The SII has announced that it will review the information provided by registered platforms and verify that their VAT returns and payments correspond to the information provided by payment service providers.