Chile Tax Agency Clarifies VAT Exemption for Cultural Services

The Chilean Internal Revenue Service Nov. 8 issued Letter No. 2167, clarifying the VAT exemption for cultural services. The circular includes measures that: 1) define “integrated production” service as a series of activities necessary for the organization and realization of cultural, artistic, and heritage dissemination events including logistical, administrative, and purchasing elements; 2) provide VAT exemptions to registered cultural associations; 3) specify that comprehensive production services which include logistical, administrative, and purchasing activities do not qualify for this exemption; and 4) emphasize the predominance of personal work over capital for tax classification. [Chile, Internal Revenue Service, 11/08/2024]

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