Chile: VAT exemption applicable to workers who work alone not available to sole proprietorships

A report on recent VAT and tax-related developments

A report on recent VAT and tax-related developments

The tax authority clarified, after issuing four rulings during 2023 inconsistent with such clarification, that the value added tax (VAT) exemption applicable to workers who work alone is not applicable to the activity carried out by a sole proprietorship.

Read a May 2023 report (Spanish and English) [PDF 1.3 MB] prepared by the KPMG member firm in Chile

Other tax-related topics discussed in this report include:

  • Immediate depreciation of intangible assets acquired between 1 June 2020 and 31 December 2022
  • Simultaneous application of transfer pricing and thin capitalization rules
  • Issuance of invoice for VAT purposes for reimbursement of international cargo insurance premium
  • Recovery of the specific fuel tax (Easter Island)
  • Concept of "dependents" in professional companies for VAT purposes
  • Taxation of income obtained by a person who moves abroad and who would have lost his domicile and residence in Chile
  • Treatment as an organizational and start-up expense of payments made in business unit acquisition
  • Exclusion of VAT on services included in government tenders and public procurement


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