Chile Tax Agency Clarifies VAT for Services Between Nonresident Company, Local Supplier

The Chilean Internal Revenue Service Nov. 24 issued Letter No. 2,737, clarifying VAT for services between a nonresident company and a local supplier. A private local service provider delivered professional and administrative services to a nonresident company and only offered these services to companies in the nonresident’s group. The nonresident company sought clarification on the VAT application to the services. The tax agency clarified that: 1) remuneration paid to the supplier isn’t subject to VAT, since the supplier is exclusive to the nonresident company’s group; and 2) the supplier must issue tax documentation for services provided, unless the transaction is ...