VAT exemption for services provided by a hotel to foreign tourists

• Exemption Criteria: Hotel services provided to foreign tourists without residence in Chile are exempt from VAT under Article 12, Letter E, No. 17 of the Sales and Services Tax Law (LIVS), as long as the hotel is registered with the tax authority and the services meet specific criteria.
• Payment Conditions: Payments for these services can be made in foreign currency by any individual or entity, including intermediaries, without affecting the VAT exemption, provided that the hotel documents the identity of the foreign tourist benefiting from the service.
• Regulatory Guidance: The exemption applies regardless of who makes the payment, as long as the hotel services qualify under the defined criteria, emphasizing that the focus is on the nature of the service rather than the type of establishment providing it.

Source ales and Services – Law on Tax on Sales – Art. 12 Letter E N°17 – Circular No. 17 and 56 of 1991, Circular No. 37 of 2014 – Official Letter No. 1701 of 2008 – (Ordinary Official Letter 1395, of 07/24/2025)