Chile Tax Agency Clarifies VAT Treatment of Health Services Under Complementary Coverage Regime

The Chilean Internal Revenue Service on Nov. 27 issued Letter No. 2447, clarifying the VAT treatment of health services under the complementary coverage regime (MCC). The taxpayer, a healthcare entity, inquired concerning VAT treatment if beneficiaries voluntarily accessed additional financial coverage against health costs, with the healthcare providers signing a registration agreement with the National Health Fund (FONASA), the providers receiving payment for the services from FONASA, and FONASA partially recovering amounts from the insurers and co-payments. The Tax Agency clarified that: 1) outpatient services are fully VAT-exempt if they exclude lodging, meals, or heath recovery medical treatments typical of ...