- Payments for software licenses to nonresident providers are exempt from additional tax if commercial exploitation isn’t allowed.
- Such payments are subject to VAT as services provided by a nonresident to a Chilean entity for use in Chile.
- The nonresident service provider must register and withhold VAT under the simplified regime since the Chilean entity isn’t a VAT taxpayer.
- If the provider doesn’t register and withhold, the Chilean entity can request withholding by issuing a purchase invoice.
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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