- VAT exemption is eliminated for imports of goods under USD$ 41.
- A new hypothesis of VAT territoriality on sales is established, under which it will be understood that movable tangible goods that are located abroad, acquirer remotely by a person who is not a seller or service provider, are located in Chile, when such goods are destined to Chilean territory, even before their shipment or delivery to Chile, provided the purchase price does not exceed USD $500 (or its equivalent in national currency).
Therefore, the purchase of such goods made by a non-VAT taxpayer will be subject to VAT, as if the goods were located in the country. - The importation of such goods will be exempt from VAT, provided it is certified that the VAT for the transaction was effectively collected by the seller or digital platform. Moreover, these imported goods will also be exempt from customs duties.
- For goods with a purchase price over USD$500, VAT and customs duties will be applied according to the general rules
Effective date: Twelve months after the law’s publication in the Official Gazette.
- Operators of digital intermediation platforms are now treated as VAT taxpayers, equating them to regular sellers or service providers (subject to VAT), unless the buyer or beneficiary of the service is a VAT taxpayer, in which case, a reverse mechanism (change of taxpayer obligated to declare and pay the VAT) would apply.
The concept of “operator” includes both individuals and entities, whether national or foreign, with or without domicile or residence in Chile. Operators without domicile or residence in Chile will be subject to the applicable simplified tax regime. - In those cases, in which more than one digital intermediation platform facilitates jointly or simultaneously the same transaction, only the one that authorizes or processes the payment of the taxed transaction will be considered as the VAT taxpayer.
- The presumption of territoriality regarding the use of digital services under Article 8 n) in Chilean territory will be applicable to any service that is provided remotely.
- The simplified taxation regime, currently applicable to non-resident taxpayers providing services under Article 8 n) of the VAT Law to individuals who are not VAT taxpayers, is extended to include all services or sales made by non-resident taxpayers to persons domiciled or resident in Chile, who are not VAT taxpayers.
Effective date: The first day of the month following the law’s publication in the Official Gazette, except for the establishment of the operator of digital intermediation platforms as VAT taxpayer, which will come be effective 12 months after the publication of the law.
- A new control rule is introduced, allowing the Chilean IRS, after prior subpoena, to assess and collect the VAT on the sale of a movable or immovable tangible asset that forms part of the fixed assets of a company created or continued as a result of a corporate reorganization when the primary purpose of such reorganization was to avoid paying the tax. The specific circumstances of the transaction will be considered.
- It must be related to the sale of a fixed asset whose acquisition, importation, manufacture, or construction has given right to VAT tax credit.
- For these purposes, the taxable base for the sale will be the normal market value of the fixed assets indirectly disposed or those normally charged in similar transactions, considering the circumstances of the transaction. The Chilean IRS may exercise its appraisal power in accordance with Article 64 of the Tax Code.
Effective date: The first day of the month following the law’s publication in the Official Gazette.
- The Chilean IRS power to appraise sales or services is maintained in those cases in which the VAT payable by the taxpayer cannot be clearly or reliably determined (under certain criteria that allow a reasonable estimate of the tax payable). However, this appraisal power will require prior subpoena.
- Additionally, it is included the faculty for the taxpayer to demonstrate the VAT credit incurred on the acquisition of goods or services.
- The possibility for the taxpayer to request that the Chilean IRS exercise its appraisal power when the taxpayer considers that it is unable to determine its VAT liability is maintained. However, it is included that the taxpayer may request that such appraisal and its calculation be sent to the Tax Ombudsman for review. This process is applicable only when the sales determined by the Chilean IRS do not exceed 2,400 UF (USD$ 98,000 approx.) in a calendar year.
- If payment is made within three months of the tax appraisal, and the taxpayer had initiated activities at the time of payment, all interest and penalties will be waived.
Effective date: The first day of the month following the law’s publication in the Official Gazette.
- It is established that exporters who notify the Chilean IRS of the termination of their activities must prove that, in the 36 months, they made exports equivalent to at least the total amount of refunded taxes during that period.
If the required export amounts are not met, the refunded sums (considered as VAT credits) must be repaid. - The “early refund authorization for exports” granted by the Ministry of Finance may be transferred in cases where the holder is absorbed by another entity in a corporate reorganization process. This transfer is allowed provided that the surviving or new entity expresses its intention to continue with the respective project.
- New scenarios in which the prior special audit will specifically apply have been introduced:
- When the proportion of exports in the total sales and services of the period during which the refund is requested, or the amount requested in that month, is significantly higher than the average for the last 12 periods.
- When the requested refund amount exceeds the FOB value of the exported goods or services in the period.
If the taxpayer cannot provide satisfactory evidence for the requested refund amount, the Chilean IRS will determine, if applicable, the amount to which the taxpayer is entitled according to specific methods established in the bill.
Effective date: The first two paragraphs shall enter into force six months after the issuance of the Supreme Decree replacing Supreme Decree No. 348 of 1975 of the Ministry of Economy, Development and Reconstruction, the consolidated text of which is contained in Supreme Decree No. 79 of 1991 of the Ministry of Economy, Development and Reconstruction, which shall be issued within three months following the publication of the law in the Official Gazette. The other amendments will become effective as from the first day of the month following the publication of the law in the Official Gazette.
