Chile Clarifies VAT and Income Tax Rules for Non-Resident Service Providers in Recent Ruling

• Chile’s Tax Authority ruled that services provided by non-resident businesses and used in Chile are generally subject to VAT, unless a specific exemption applies.
• If the service is subject to both VAT and Income Tax, only one tax is levied to avoid double taxation.
• For non-resident service providers, the Chilean recipient (if VAT-registered) is responsible for accounting for VAT under the reverse-charge mechanism and may claim input tax credits.
• The ruling clarifies tax obligations for non-resident companies providing services in Chile and can serve as guidance for similar cases.

Source: 1stopvat.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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