Chile Tax Agency Clarifies VAT Exemption on Services Provided to Institution Staff

The Chilean Internal Revenue Service April 28 issued Letter No. 1422, clarifying the VAT treatment of services provided to the staff a public institution. A company provided services to the staff of a public institution, and granted VAT-exempt invoices for those services. The company sought clarification as to the VAT treatment of those services, and as to any sanctions for issuing VAT-exempt invoices for the services that were subject to VAT. The tax agency clarified that: 1) the services provided by the company were not VAT-exempt; 2) the company must issue VAT invoices for the services; and 3) the issuance ...