Chile Tax Agency Clarifies VAT Exemption for Individual Entrepreneurs

The Chilean Internal Revenue Service March 26 issued Letter No. 12/2024, clarifying the VAT exemption for individual entrepreneurs. The letter clarifies: 1) the exemption for services provided by independent workers who exercise predominance over the capital or materials used; 2) the definition of “individual companies” as those established by a natural person, with the assets and liabilities of their property used for carrying out an economic or business activity; and 3) the exclusion of services provided through the figure of an individual entrepreneur. [Chile, Internal Revenue Service, 03/26/24]

Reference: View Letter No. 12/2024. View Index.