- The Chilean IRS clarified VAT obligations for credit card installment payments processed by an electronic payment service provider.
- No VAT applies because the transaction is a transfer of a claim, not a sale or service.
- The provider is not required to issue tax documents to the taxpayer.
- The taxpayer may deduct the substantiated loss from the difference between the assigned debt and the provider’s advance, under certain conditions.
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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