Tax Implications of Institutional Benefits under Framework Agreement with YY – VAT Analysis

• Consultation regarding the application of VAT on sums delivered to YY in the context of the framework agreement
• YY is not the seller of the goods purchased by public officials, only administers the benefits
• Money given to YY by the Fiscalía does not constitute a sale and therefore does not require VAT
• No need to issue a tax document when money is given to officials through a virtual card, application, or wallet system
• VAT should only be charged when beneficiaries use the cards to purchase goods from YY-affiliated stores
• The sale of goods by the affiliated stores should be accompanied by the respective invoice as per article 52 of the VAT Law.

Source: www4.sii.cl

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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