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E1: 76H: Legal Requirement SII Chile Purchase Invoice For Suppliers And Purchase Book - Classification for Retaining Taxpayers and Risky Taxpayers (Doc ID 2537848.1)

Last updated on FEBRUARY 05, 2020

Applies to:

JD Edwards EnterpriseOne Procurement and Subcontract Management - Version 9.1 and later
Information in this document applies to any platform.


Chile has a new legal requirement. SII Incorporates New VAT Subject Change for Taxpayers who Repeatedly Show Tax Compliance Gaps.

The measure is part of the actions that the Service performs to protect the compliance of taxpayers and the collection associated with the tax, which represents about half of the annual tax revenues.

The payroll of retained taxpayers and withholding agents will be published and updated semiannually in June and December of each year.

On August 1, 2018, a new type of VAT Subject Change will come into force, which will apply to taxpayers from all sectors of the national economy who repeatedly submit tax compliance gaps associated mainly with VAT obligations, such as How not to present the monthly statement or sub-declaring the tax. The measure was announced through the publication of Resolution No. 42, of April 30, 2018.

The change of subject means transferring the obligation to retain and declare the Value Added Tax (VAT), from the seller to the purchaser. This, in turn, must issue a purchase invoice, which specifies the amount and percentage of VAT withheld from third parties. To date, the changes of subjects applied only to operations of purchases or sales of certain products or the provision of certain services, however, with this new measure will be applied for the first time, considering the behavior and risk classification of taxpayers.

The measure is part of the Tax Compliance Model that the SII is applying, which considers treatment actions proportional to the level of compliance of taxpayers.

The incorporation of this Change of Subject is possible due to the information available in the Purchase and Sales Registers and the Proposal of VAT Form 29, which the Service automatically constructs for all taxpayers, based on electronic tax documents.

Along with favoring the collection of the tax, this measure will allow to reduce the enforcement actions and the application of fines and interest associated with VAT breaches for taxpayers withheld; along with simplifying the administrative procedure for small taxpayers, since it is the withholding agent who is in charge of issuing the purchase invoice and receiving the tax debit. Additionally, greater tax certainty is generated for buyers who will not see questions about their VAT tax credits for their purchases and, therefore, spaces are closed for tax fraud cases.


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