Chilean VAT Regulations: Taxable Persons and Exemptions

Posted on Jan 22, 2025 in Law

Persons Subject to Chilean VAT

According to the Ministry of Law, the following are subject to the effects of duty established by tax provision:

VAT Applicability

The following are subject to VAT:

Seller in a convention
Natural person engaging in operations
The amount of these operations
The buyer when the resident has no vendor in Chile
The company referred to in letter C, Article 8, each partner will be responsible
Payment of tribute corresponding to foreclosed assets
The contributor, contributions to the company
The recipient of the service, if the person is providing foreign services
The letter E contractors, Article 8, and in real estate by bill rows.

Article No. 12 Provisions

Sales and Transactions

That fall on the following property:

DL No. 825, are exempt from this tax

Exempt Items and Transactions

The following items and transactions:

Exempt Property

Used motor vehicles

Except: movable and immovable tangible goods, Article 8 l. m before being transferred

12 months from the date of acquisition. / / Option to buy a contract leasing

The species transferred by way of royalties to Tabajaras water, electricity.

The raw material national resident for case address of import national.

Such matter intended for production, elaboration, or fabrication destined for export.

Which must be purchased by persons not issued by fact. or PR

Point B: Import of species made by the Ministry of Defence National and in

Machinery when they are related to your arms war items fabrication.

2. – a) The representations of foreign countries accredited in the country.

b) The institutions or bodies

7. – The award amounts to be

to Chile international

or cultural or sports trophies, but not

c) The diplomats and officials

commercial

countries with international

8. – The national artist on

3. – The passengers, when species

Works

constitute baggage of travelers, be they

executed by them, in cases

New or used if they are exempt

that are established in the

customs duties.

Customs Tariff.

5. – The crew of aircraft and other ships

vehicles when species constitute

baggage and are free of duties

Customs

Tax Debit

Article 20 of Decree No. 825 states that the “tax debit monthly” is the amount of tax surcharges on sales and services made in the respective tax period (monthly).

For these purposes, you should recognize that established in Article No. 23, No. 1

specifying that the tax credit is obtained as follows

“This credit will be equal to the tax of this title, leaning against the bills

evidencing their purchases or use of services, or in case of import.

paid for the import of species into the country over the same period”

Tax Credit

Tax Credit will be entitled to the tax paid

or on transactions that fall

Species tangible property or services

intended to be part of its Current assets

(Assets) or Fixed Assets and Other Assets

and those related to other types of expenses

general (overhead) to say regarding

the taxpayer’s business or activity.

Also entitled to tax credit in

invoices issued in the lease.

Not entitled to tax credits for the import

or acquisition of goods or services using

events affecting unencumbered by DL No. 825, on

Value Added Tax.