Chile Tax Agency Issues Letter Clarifying VAT Treatment of Services Under Assigned Public Contracts

The Chilean Internal Revenue Service Nov. 12 issued Letter No. 2353, clarifying the VAT treatment of services under assigned public contracts. The taxpayer, a French company’s agency, stated that the company sought to assign to a Chilean subsidiary contracts signed before Jan. 1, 2023, to provide services to a Chilean public company. The contracts’ essential elements wouldn’t change. The taxpayer inquired whether the services under the assigned contracts would be exempt. The Tax Agency clarified that: 1) a specific Sales and Services Tax Law (LIVS) exemption doesn’t apply to services under government contracts awarded or entered into before Jan. 1, ...