Chile Tax Agency Clarifies VAT Documentation, Declaration Requirements for Telephone Recharges, Prepayments Involving Intermediaries

The Chilean Internal Revenue Service Aug. 19 issued Letter No. 2500, clarifying VAT documentation and declaration requirements for telecommunication company sales of telephone recharges and prepayments through an intermediary or directly to final consumers. A telecommunications company sought the clarification. The tax agency clarified that: 1) telecommunications services are expressly subject to VAT under the law and to the general rules on documentation; 2) the company would be required to document, recharge, declare, and pay VAT in accordance with the general rules if it sold the services directly to final consumers; 3) if the intermediary sold the services, the company ...