Chile’s Analytics and E-Invoicing Controls Prevent £25 Million in Misuse of VAT Credits

Chile’s tax authority has published new results showing how data analytics and controls on electronic invoice issuance are helping identify false invoices and prevent the misuse of VAT credits.

In an update published on 5 October, the Servicio de Impuestos Internos (SII) reported that invoice restrictions prevented CLP 32 billion (Approx £25 million GBP) in improper VAT deductions during the first half of 2026. Its preventive and control measures also identified 6,704 new high-risk invoice issuers and 28,730 recipients of false invoices.

The fraud involves invoices for transactions that never took place. Businesses use these documents to claim input VAT on fictitious purchases, reducing the VAT they owe.

The SII uses analytical models, business rules and cross-checks of information to identify suspicious patterns. Regional teams investigate the alerts and feed their findings back into the models to improve detection.

E-invoicing controls can begin before a business issues its first invoice. The SII can restrict online invoice issuance where registration information contains inconsistencies or there are substantiated concerns that proposed transactions will not take place. Restrictions also apply where evidence indicates that invoiced transactions did not occur.

The results illustrate how data analytics, combined with controls on invoice issuance, can help tax authorities intervene before improper VAT claims are made.

The SII plans around 400 further audits in late 2026 and early 2027, including checks on overstated input VAT deductions. It also intends to expand its use of AI and automation to validate documents, reduce false positives and focus investigations on more complex cases.

Source: SII