Chile Tax Agency Clarifies VAT Refund for International Cargo Transportation

The Chilean Internal Revenue Service Dec. 6 issued Letter No. 3005, clarifying the VAT refund for international cargo transportation services. The taxpayer, a cargo transportation company, provided land cargo transportation services from Argentina to Chile. The taxpayer sought clarification as to whether the Chile-Argentina-Chile section freight service was could continue requesting export VAT refunds on the remaining tax credits for their exempt services, and the documentation required. The Tax Agency clarified that: 1) income from cargo transportation services to Chile from abroad, and vice versa, are exempt from VAT provided that invoices are issued for sales and VAT-exempt services when ...