Chile Tax Agency Issues Letter Clarifying VAT Offset Rules for Supplies of Goods, Services

The Chilean Internal Revenue Service Oct. 16 issued Letter No. 2072, clarifying the VAT offset rules. The taxpayer, a fruit producer, sold goods to an exporting company and received VAT invoices that withheld 14 percent, with the remaining 5 percent of VAT charged to the taxpayer. In addition, the exporting company issued a VAT invoice charging 19 percent for services provided to the taxpayer, which was less than the amount withheld for the goods. The taxpayer sought clarification regarding whether the VAT charged for services could offset the VAT amount withheld for the goods. Upon review, the Tax Agency clarified ...