Chile Tax Agency Clarifies VAT Exemption on Personnel Provision Services

The Chilean Internal Revenue Service Nov. 15 issued Letter No. 2838, clarifying the VAT exemption on personnel provision services. The taxpayer, a limited liability company, provided information technology-specific professional services. The taxpayer sought clarification as to whether the activity of providing personnel to third parties in the information technology field was a commercial activity eligible for VAT exemption and if additional supervision and management activities didn’t alter the commercial nature of the activity or make it a professional service. The Tax Agency found that: 1) the activity consisting of providing personnel to third parties, with or without supervision, was a ...