Chile Tax Agency Clarifies Rules on Late Invoices, Deductions for Unrecoverable VAT

The Chilean Internal Revenue Service Jan. 7 issued Letter No. 24, clarifying rules on late invoices and deductions for unrecoverable VAT. The taxpayer, an investment company, inquired into such treatment related to services supplied by a nonresident provider. The Tax Agency clarified that: 1) VAT payers receiving taxable services from nonresidents without domicile or residence in Chile, must issues purchase invoices and declare and pay the VAT to the tax authorities; 2) if these invoices aren’t issued in the tax period in which the remuneration was paid or made available to the nonresident provider, the taxpayer must do so retroactively ...