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IVA/VAT - hotel policy -

Fort Worth, TX
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75 posts
11 reviews
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IVA/VAT - hotel policy -

I have reserved several hotels for my vacation in Chile. I understand that I dont have to pay the VAT if I am a foreigner. I am from the US and my husband iwas born in Chile (but has lived in the US since he was 10). We are trying to avoid the taxes by putting everything in my name and me paying for it. What do they ask for to validate that I am not from Chile? A passport? Will they ask my husband also or just me bc the reservation is in my name? I talked to one hotel and they mentioned an immigration card for validation. What's that?

Thanks for any help~

Alexandria, Virginia
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84 posts
13 reviews
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1. Re: IVA/VAT - hotel policy -

When I have traveled in Chile with my daughter, who is a permanent resident, we have reserved hotels in my name. I don't believe that I have had to show more than my passport - for sure the others were not asked for any papers. Also, I was using a credit card from the USA.

Perhaps the immigration card refers to the piece of paper you fill out when you arrive, and keep a copy of to show as you leave Chile.

Have fun!

Santiago, Chile
Destination Expert
for Chile
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10,479 posts
27 reviews
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2. Re: IVA/VAT - hotel policy -

As long as you are not resident you do not pay the IVA on your hotel bill. The proof that you are a tourist is, as Moma says, the copy of the little paper you fill out to enter Chile. You need it to show when you leave too, by the way. It is irrelevant that your DH was born here. He isn't resident. If he were a resident he would not have the slip. He would have presented the original leaving Chile and had the copy taken when he returned. There should be no problem.

Santiago, Chile
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17 posts
6 reviews
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3. Re: IVA/VAT - hotel policy -

You will not pay VAT provided that you pay in foreign currency (not Chilean pesos) or with your foreign credit card.

Technically, the VAT exemption is for "foreign citizens who are neither resident nor domiciled in Chile". Hotels must provide a list of the persons that were granted the exemption to the Chilean IRS, but, here is the catch, the list must include only one name, not the list of all the persons that stayed in the room. So, they will not care if you are staying with your Chilean husband. They will keep copy of your passport for this and they may ask a copy of the paper that you receive when you enter Chile.

London, England
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309 posts
1 review
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4. Re: IVA/VAT - hotel policy -

A reply I posted recently which may help you if you register in your US name and confirnm when you arrive at hotels that you wish to pay in dollars - I just showed my passport & immigration card the form you fill in on the plane before arrival that note you must keep hold of, I did not have to show husbands !

Just back form Chile, most places were pre-booked as a group and we ate outside the hotel.

BUT at Torres Del Paine National Park we stayed at the Lago Grey for 3 nights and made sure that reception knew we wished to pay out hotel bill for food & drink in US dollars. In the National Park there is no option to really eat outside the hotel so it was the only place in Chile we ran up a room bill for incedentials.

At the end of the stay we were provided with a bill that included the prices pre-18% tax, and also showed the full taxed price as shown on bar menus etc for information. They seemed pretty set-up for this arrangement, but then they are are tourist hotel use to dealing with clients paying in US$ dollars with large food & drink bills.

One thing that the 18% tax discount did not apply to were excursions such as the Lago Grey lake Crossing

5. Re: IVA/VAT - hotel policy -

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