Chile Tax Agency Clarifies VAT for Virtual Office Services

The Chilean Internal Revenue Service Nov. 23 issued Letter No. 2720, clarifying the application of VAT for virtual office services. A taxpayer sought clarification on whether virtual office services are exempt or not subject to VAT because they’re taxed under the income tax law. The tax agency clarified: 1) virtual office services are taxed based on the nature of the service provided; 2) the taxpayer must determine the value of each service independently and issue separate invoices; and 3) VAT is charged on all services, if they can’t be divided. [Chile, Internal Revenue Service, 11/23/20]

Reference:
View Letter No. 2720 ...