Other direct and indirect tax developments
The Chilean tax authority (SII) clarified the manner in which a taxpayer must correct errors when issuing invoices for value added tax (VAT) purposes for progress of work under a general housing construction contract with housing committees and sponsoring entities benefiting from a VAT exemption.
Specifically, in the event a taxpayer mistakenly invoices a tax debit, a credit note must be issued, and the taxpayer cannot deduct the tax directly from its tax debits, but must request the refund of the excess tax paid in accordance with the Chilean Tax Code. After issuing the corresponding credit notes, a new VAT exempt invoice must be issued, which will enable the taxpayer to use the benefit.
Read a February 2024 report (Spanish and English) prepared by the KPMG member firm in Chile
Other direct and indirect tax-related topics discussed in this report include: