Chile extends DTE rollout deadline for SMEs and microbusinesses

This delay is due to one of the modifications of the 2014 Tax Reform, which extends the deadline for SMEs and microbusinesses to migrate to the Electronic Tax Document (DTE). Nevertheless, the date remains the same for large companies with revenue of over 100,000 CLF (approximately USD 4,219,409) a year. They will have to adapt by November 1, 2014.

Rollout of e-invoicing in Chile is taking place gradually, regulated by Transitory Article 1 of Law number 20.727. The article sets forth a schedule affecting 5 different taxpayer groups, depending on the type of company, their income level and location. The new Tax Reform affects 4 of these 5 sectors, taking in all companies with revenue of less than 100,000 CLF (approximately USD 4,219,409) annually.

After adaptation of the big companies by November 1, SMEs located in urban areas and with income between 2400 and 100,000 CLF (approximately USD 101,266 and 4,219,409, respectively) will have a deadline of 1 year and 9 months to sign up to the DTE, that is until August 1, 2016. Next up for the switchover will be companies with the same income level, but located in the rural scope, as well as urban microbusinesses (less than 2400 CLF a year). For these two groups, the target date is February 1, 2017. The last to join will be rural microbusinesses, which will have another years grace, until February 1, 2018.

The Tax Reform also modifies other e-invoicing related aspects in Law number 20.780, such as the rates and codes laid down for soft drinks, alcoholic beverages and other related products.