Chilean Deputies Call for Suspension of VAT on Online Betting
Chile.- 14 August 2026 | www.zonadeazar.com Chile’s Chamber of Deputies has approved by a broad majority an agreement challenging the Internal Revenue Service’s decision to enable Value Added Tax (VAT) payments by foreign online betting platforms.
The initiative calls for the tax mechanism to be suspended until Congress establishes a comprehensive regulatory framework for online betting.
Concerns Over VAT Collection
Lawmakers expressed concern over what they see as a contradiction between tax policy and the current legal status of online betting platforms in Chile.
The debate follows court decisions establishing mechanisms to block access to certain platforms operating in the country without legal authorisation.
Although the Internal Revenue Service maintains that its role is strictly limited to taxation and does not determine whether operators are legally authorised, the Chamber warned that a formal tax registration and payment system could create a perception of state recognition or validation.
Call for Suspension
The agreement argues that VAT collection should be suspended until a specific regulatory framework for online betting has been approved.
Deputies said the conditions under which the activity may operate in Chile cannot be determined exclusively through tax policy.
They argue that future regulation must also address consumer protection, operational controls, social and health risks and safeguards for children and young people.
Statements
Deputy Marco Antonio Sulantay, one of the promoters of the initiative, questioned the consistency of taxing operators that are not currently authorised to operate under Chilean law.
He called for the tax mechanism to be suspended until Congress determines the legal framework governing the activity.
Deputy Constanza Schonhaut also argued that allowing platforms to pay VAT could be interpreted as an indirect form of validation and highlighted what she sees as a contradiction between judicial rulings and the tax authority’s approach.
Deputy Patricio Briones similarly called on the government to establish a clear policy regarding foreign online betting platforms.
Regulatory Context
Chile continues to debate the future legal framework for online betting while differences remain between tax authorities, court decisions and political actors over how international platforms should be treated.
The VAT issue adds another layer to the debate by separating tax obligations from legal authorisation to operate.
Lawmakers supporting the agreement argue that this distinction risks creating conflicting signals for both consumers and businesses.
Consumer Protection
The agreement also highlights concerns regarding platforms operating outside the controls and obligations applied to regulated activities.
Lawmakers cited potential social and health consequences associated with gambling, particularly mental-health risks, as well as concerns around children and young people.
They argue that these issues should form part of any future comprehensive regulatory framework.
Next Steps or Impact
The agreement represents a political position adopted by the Chamber and seeks to encourage the government to reconsider the VAT mechanism while the legislative debate on online betting continues.
The decision increases pressure for the creation of a dedicated regulatory framework clearly establishing which companies may operate, under what conditions and with what tax and consumer-protection obligations.
The debate will be particularly relevant for international platforms currently serving Chilean users and for authorities designing the country’s future regulated market.
Editó: @fonta
