Chilean IRS Opens Consultation on New Simplified VAT Regime for Market Vendors

• Chilean Internal Revenue Service opened a consultation on a draft circular for a new simplified VAT regime for open-air market vendors
• The regime was introduced by Law No. 21,745 and took effect on Aug. 1
• The draft circular outlines essential aspects of the regime, including voluntary participation and no sales limits
• Clarifies the 1.5 percent substitute tax rate for sales via authorized electronic methods, withheld by the payment operator and declared monthly
• Vendors are exempt from filing VAT returns and maintaining accounting records, and cannot claim VAT credit on purchases
• Provides eligibility requirements for the regime
• Lists causes for exclusion from the regime and allows vendor registration until Dec. 31
• Comments on the draft are due by Aug. 13

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.

---

---