Chile Tax Agency Clarifies VAT Tax Credit on Fuels Used in Electric Generators

The Chilean Internal Revenue Service June 9 issued Letter No. 1849 clarifying the VAT tax credit rules on the purchase of fuels used for electric generators that support a business selling frozen food. A Chilean company sought clarification as to whether it could take the VAT tax credit for purchasing fuels and using them for its frozen food business. The tax agency clarified that a taxpayer may take the VAT tax credit if the taxpayer: 1) is a VAT taxpayer or exporter; and 2) does not use fuels for motor vehicles that travel through streets, roads, and public highways. [Chile, ...