Colombia vs Chile — VAT Comparison 2026

    Latin American VAT comparison for businesses expanding in South America.

    CriteriaColombiaChile
    Standard Rate19%19%
    Reduced Rates5%None
    Registration ThresholdNo general thresholdNo general threshold — all commercial activities subject to IVA
    CurrencyCOPCLP
    Filing FrequencyBimonthly or quarterlyMonthly

    Key Differences

    Colombia has a standard VAT rate of 19% compared to 19% in Chile. Chile has the higher standard rate, potentially impacting pricing for businesses operating there.

    Registration thresholds differ significantly: No general threshold in Colombia vs No general threshold — all commercial activities subject to IVA in Chile. This affects when small businesses must start charging and collecting VAT.

    Penalties Comparison

    Colombia

    5% per month for late filing, up to 100% of tax due. Interest at market rate + 3%.

    Chile

    10% penalty for late filing plus 1.5% interest per month.

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