Chile Tax Agency Clarifies VAT on Dental, Outpatient Medical Services

The Chilean Internal Revenue Service Nov. 15 issued Letters Nos. 3311 and 3312, clarifying VAT exemptions on outpatient dental and medical services. The taxpayers sought clarification as to the application of VAT on dental services, and consultations or surgeries for hospitalized patients that exclude the provision of accommodation or food. The tax agency clarified that: 1) outpatient health services, benefits, and procedures, excluding accommodation or food, when provided by trained professionals of a professional society, are exempt from VAT, effective Jan. 1, 2023; 2) the VAT exemption for outpatient services applies to dental medical services and consultations by external doctors ...