- Chilean companies must pay VAT when purchasing software from US suppliers if only distribution rights are acquired.
- No withholding tax applies due to the Chile-US tax treaty, but the treaty also removes the standard VAT exemption for royalty payments.
- Sublicensing the software to foreign clients (e.g., in Central America) is a taxable event, but may be VAT-exempt if certified as an export service by Chilean customs.
- The VAT exemption for outbound sublicensing depends on official export service certification.
Source: regfollower.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.
Latest Posts in "Chile"
- Chile Tightens the Net on Foreign Digital Platforms Under Its Simplified VAT Regime
- Chile Lists Registered Online Betting VAT Platforms
- Chile Enforces New VAT Regime on Foreign Online Gambling Platforms
- VAT Line Drawn Between Own-Account Invoice Trading and Fintech Intermediation
- SII Rolls Out Optional VAT Withholding for the Agri-Services Sector
