A foreign tourist paying with a foreign credit card at the Sheraton Viņa will not pay VAT. I have only been to Chile maybe 40 to 50 times, so I probably don't know much, but the only time I've paid VAT, no matter what currency the bill is based upon, was at some small cash or bank transfer only cabaņa places in Cochiguaz.

But again, given my limited experiences, use my commentary sparingly.