Chile's Servicio de Impuestos Internos (SII) has issued a tax ruling allowing online betting and casino operators to calculate value-added tax (VAT) on their net gambling revenue rather than total wagers.
Operators must be able to demonstrate that the margin represents their remuneration.
The ruling followed a request from a foreign operator providing remote betting services in Chile. The company, which said between 90% and 97% of wagers are returned as prizes, sought confirmation that VAT could be calculated on its net gaming margin rather than the total amount wagered.
The SII said that, as a general rule, VAT applies to the total consideration received as remuneration for a taxable service, without deducting prize payouts.
The agency noted that the special tax regime for legally authorized casinos does not extend to these platforms.
However, the ruling opened an exception. Where a taxpayer can conclusively demonstrate to the SII that its remuneration corresponds exclusively to the difference between amounts wagered and prizes paid out, that margin can serve as the VAT base instead.
Results must be declared monthly or quarterly under Article 35 D of Chile's VAT law.
The SII also said it may request information from taxpayers under the intermediary tax regime about the identity of vendors or service providers and the amounts paid to them, to ensure transparency in a market operating remotely across borders.
Earlier SII rulings from 2021 and 2022, which set the total wagered amount as the default tax base, remain in effect for operators unable to prove a margin-based remuneration structure. The burden of proof falls on the taxpayer.
Earlier this year, the SII introduced a dedicated registration system for offshore betting platforms and said operators that had provided services in Chile during the previous 36 tax periods would be required to pay outstanding VAT through the country's Digital VAT regime
