Chile Tax Agency Issues Letter on VAT Documentation Requirements for Foreign Purchases

The Chilean Internal Revenue Service Nov. 12 issued Letter No. 2357, clarifying VAT documentation requirements for foreign purchases. The taxpayer, a company, made purchases from foreign suppliers who underdeclared VAT, and from online marketplaces, with the goods entering Chile without import documents or declared VAT payment. The taxpayer inquired as to invoicing to regularize the VAT. The Tax Agency clarified that: 1) effective Oct. 25, VAT applies when goods located abroad are transferred to Chile for consideration, either as a remote sale or an import; 2) if the purchaser is a VAT taxpayer in such cases, the VAT is collected ...