Chile Tax Agency Clarifies VAT, Income Tax Treatment for Books Sold Under Co-Publishing Contract

The Chilean Internal Revenue Service Sept. 12 issued Letter No. 2768, clarifying the VAT and income tax treatment for books sold under a co-publishing contract. An author entered into a co-publishing contract and sought clarification as to the VAT and income tax treatment and invoicing requirements for the books he sold directly and for those sold by the publisher. The tax agency clarified that: 1) for direct sales of books to the public, the author must issue sales receipts, or invoices to VAT taxpayers, and the author must pay the complementary global tax on such income; and 2) the author ...