# Understanding Chile VAT for Low-Value Shipments

Chile applies a simplified VAT process to imported parcels under $500 USD. This article explains how VAT is calculated and when this shipping channel applies.

June 13, 2026

This article reflects regulations as of October 2025. Customs rules change frequently — confirm current requirements for your target markets before making pricing or shipping decisions.

Chile updated its VAT policy for low-value imported parcels effective October 25, 2025. Under this policy, shipments with a parcel value below $500 USD follow a simplified VAT process with no customs duties. This article explains how the VAT is calculated, who this shipping channel applies to, and what information is required when placing an order.

# Things to keep in mind

- Always declare the parcel value accurately. Under-declaration may result in customs detention, destruction, or other penalties.
- We do not assume responsibility for customs-related consequences caused by incorrect or understated declared values.
- VAT is calculated and withheld during order placement, not at delivery.

# Who does this shipping channel apply to

This shipping channel is only available if all of the following conditions are met:

- The parcel value is below $500 USD
- The shipment does not use a platform tax number
- The shipment is sent under a Delivered Duty Paid (DDP) service, where the sender covers VAT

If any of these conditions are not met, this channel does not apply, and a different customs process may be required.

# How VAT is calculated and charged

Chile applies a uniform VAT rate of 19% to qualifying low-value parcels. Customs duties are exempt.

VAT is calculated using the CIF value of the shipment:

- VAT equals CIF multiplied by nineteen percent

For DDP shipments:

- The sender bears the VAT
- VAT is withheld at 19% of the declared value at the time of order placement
- No handling or processing fee is added

# Information required when placing an order

To avoid delays or customs issues, the following information is required at checkout:

- An accurately declared value greater than $1.00 USD
- Recipient tax number in the format of 7 to 8 digits plus 1 digit or the letter K
- Recipient phone number

Accepted phone number formats include:

- +56 six followed by the number
- 56 followed by the number
- Local 9-digit number