- Nonresident entities providing services used in Chile are generally subject to VAT.
- VAT exemption applies if services are subject to additional tax under Article 59 of the Income Tax Law.
- If no exemption, the Chilean recipient must issue a purchase invoice, declare, and pay VAT, with the option to claim a tax credit.
- Permanent establishment status and double taxation agreements may affect the tax treatment.
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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