Chile renews e-VAT return system

declaración de IVA electrónico

After a decade using Income Declaration Form 22 in Chile, the Internal Revenue Service (SII) has brought out a new application for creation of a VAT Return proposal. As 99% of tax documents are electronic, this application will generate the VAT return based on the information contained in the electronic tax documents (DTEs).

The taxpayer will be able to view all the e-tax documents and their status, which will be included in the Purchases and Sales Record. If issuing documents on paper, they must be included separately.

The SII will now set up your Purchases and Sales Books in the application and offer you an F29 proposal, which your company must then ratify, thus removing the obligation to submit the Purchases and Sales Books and forms DDJJ 3327 and 3328.

The VAT proposal will contain the following prefilled information:

  • Form 29 VAT codes, related to Invoicing, Credit Note and Debit Note transactions.
  • If you need to include information on receipts, vouchers or other documents authorized by the SII, you must enter the summary in the sales record, and it will be included in your proposal.
  • Withholdings for invoices issued to third parties.
  • The different remnants from the previous period are also brought over.
  • The VAT Refund Exporter or Subject Change amounts requested will be included when applicable.
  • If you are a self-employed worker, you access the PPM (Provisional Monthly Payments) proposal through the invoices that you issued in the period.

The new system comes into force as of August 2017 for sales and purchasing information for this month, so in September you will no longer need to send the old purchases and sales file to the SII. Download the resolution and find out all the details.

Proposal benefits

  1. As the information is obtained from already validated documents, there will be fewer errors and inconsistencies in the VAT return process.
  2. The obligation to generate the purchase and sales book disappears.
  3. It simplifies and makes the task easier for taxpayers, as it comes prefilled with the VAT amount to be declared and paid.
  4. There is e-invoicing calculation assistance for sales, services or professional fees, among others.

In addition, the proposal replaces the obligation to stamp and keep the Purchases and Sales Books and avoids fines arising from delays or failure to send the e-books.

With this initiative, the SII continues to innovate in terms of billing and electronic tax compliance to ease the day-to-day grind for taxpayers. Access Frequently Asked Questions about the Form 29 proposal.