Chile Tax Agency Clarifies VAT Rules for Leasing Machinery, Providing Complementary Services

The Chilean Internal Revenue Service Oct. 24 issued Letter No. 2069/2024, clarifying the VAT rules regarding leasing machinery and providing related services. The taxpayer, a joint stock company, sought clarification on whether leasing machinery and providing complementary services were subject to VAT under the general anti-avoidance rule. The letter clarifies that: 1) the general anti-avoidance rule doesn’t apply unless the taxpayer’s activities meet the criteria for a professional society; 2) the taxpayer can’t be classified as a professional society if it provides personnel services, because these are considered commercial activities; 3) VAT applies to all services performed in exchange for ...