The Chilean government has recently passed a Tax Compliance Bill to ensure 

tax compliance and reduce tax evasion. This new regulation impacts foreign merchants that act as intermediaries offering digital services or selling goods to consumers in Chile and establishes the procedure for VAT declaration and payment by taxpayers without domicile or residence in Chile registered under the simplified tax regime.

The new regulation introduces, among other provisions, the registration of such taxpayers, the determination of the taxable base and the tax payable, and the currency and method of payment:

1. Reporting obligations: Digital platforms (resident or non-resident in Chile) that act as intermediaries between Chilean customers and sellers/service providers will be required to report transactional information to the Chilean Revenue Services (SII) annually. This measure will take effect in May 2025.

1. VAT on low-value goods sold from abroad to Chile (physical goods only): For VAT purposes, movable goods located abroad and acquired remotely/online by a Chilean non-VAT taxpayer (i.e., individuals) will be treated as if they are located in Chile whenever the purchase price does not exceed US$500. As a result, these foreign goods will be subject to VAT in Chile, while customs duties will not apply. The direct seller, digital platforms and/or marketplaces that act as intermediaries shall comply with the VAT obligations by: i) registering with the SII; ii) adding VAT at checkout; iii) collecting tax from its customers;iv) remitting it directly to the Chilean Tax Authority. Additionally, non-VAT taxpayers will be exempt from VAT upon importation if they can demonstrate that the seller, digital platform, or marketplace has already collected the VAT. This measure will take effect in November 2025.

Several new legal developments in Mexico have recently affected foreign e-commerce merchants, especially those from Asia. 

The new legal rules include a series of updates to the collection of import and online sales taxes, which mainly affect products from countries without free trade agreements with Mexico; they also define new rules to combat fraudulent practices when packages enter the country. 

Below is a summary of those new legal changes: 

• Elimination of the duty’s exemption for goods valued under 50 USD. Mexico has eliminated the import duty exemption for goods valued under $50 USD from countries without a free trade agreement. This change, effective January 1, 2025, is outlined in Rule 3.7.35 of the 2025 Foreign Trade Rules published on December 30, 2024. The elimination of the exemption means that the 19% General Import Tax (IGI) will apply regardless of the value of imported goods from countries such as China, Bangladesh, and India, among others. Merchants that source their goods from the countries affected by the new rule need to review the impact on their operations. Here, you can find a map with the countries that Mexico currently has free trade agreements with and a list of all the countries with which Mexico has no agreements, with the link to their respective text. The Rules of Foreign Trade apply until December 31, 2025. 

• Tariffs on textiles and made-up products. On December 19, 2024, a decree was published approving two new tariffs on products from countries with no free trade agreement with Mexico. A 15% tariff applies to textile imports, and a 35% tariff applies to made-up products, to be paid by the importer when the goods enter the country. The decree lists the specific products affected by the new tariffs. The tariffs are enforceable from December 20, 2024, until April 23, 2026. 

• Rule about withholding Value Added Tax for foreign merchants selling on platforms. The rule 12.2.10 was published on December 30, 2024, and it renews the obligation of platforms to withhold the Value Added Tax (VAT) of foreign merchants that sell on their platforms. A 16% Value Added Tax (VAT) applies to goods sold to Mexican users by foreign merchants through intermediary platforms and the platforms deposit the payment in foreign bank accounts. These platforms are responsible for withholding the VAT and remitting it to the Mexican Tax Authority (SAT). To comply, platforms must file specific reports and make monthly VAT payments corresponding to the withholded amounts from sales to foreign companies. The new rule applies from January 1 to December 31, 2025. 

• Restrictions on how packages are imported. On January 6, 2025, Mexico implemented stricter criteria for importing goods and how the packages coming from abroad should enter the country, as outlined in Attachment 5 of the 2025 Foreign Trade Rules. The authorities have detected that some companies are misleading the customs authorities by either splitting orders into multiple packages, undervaluing goods, or not providing appropriate information to identify the source of the imported products, as outlined in this announcement. 

• Tax audits for importers. On January 8, 2025, the Ministry of Finance and Public Credit issued a statement outlining the master plan to enhance tax collection in the country (pages 9-10). One of the key measures highlighted is the audits of importers of goods to prevent tax evasion and fraud in Mexico. These audits will be conducted using technological tools to ensure compliance with tax obligations and identify any irregularities.