Chile Tax Agency Clarifies VAT on Contract for Import, Export of Electrical Energy

The Chilean Internal Revenue Service July 5 issued Letter No. 1894, clarifying VAT on a contract for the import and export of electrical energy. An energy-producing multinational company negotiated a contract for the export and import of electrical energy to and from Argentina. The agreement would be carried out only to the extent there were energy surpluses available in either of the company’s generating units. The Chilean company sought clarification on VAT applicable to the energy exchanges. The tax agency clarified that: 1) the export of electrical energy under the contract corresponds to a sale of movable tangible assets, not ...