- The Chilean IRS clarified VAT treatment for services under assigned public contracts.
- Contracts signed before Jan. 1, 2023, may be exempt from VAT if their essential elements remain unchanged.
- The exemption applies to contracts entered into or awarded for an indefinite term, or those signed as renewable or extendable before 2023, without substantial changes.
- Based on the taxpayer’s description of no substantial modifications, the services would be exempt.
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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