Chile: Correcting erroneous VAT invoices under tax-exempt housing construction project
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:
- Statement to be issued by administrator of a public investment fund to apply tax treatment with respect to participants who are not domiciled or resident in Chile
- Extension of deadline for filing forms Nos. 29 and 50 until 28 March 2024
- Write-off of debts of foreign company with Chilean company
- Tax equity of a company that keeps accounting records in dollars and files its taxes in Chilean pesos
- Instructions on the tax treatment of expenses and donations associated with the occurrence of catastrophes, and on the reporting of inventory losses
- Application of Article 17 of Law No. Inheritance and Gift Tax Law
- Refund of Article 27 bis of the Law on Sales and Services Tax in case of having used the benefit of Law No. 21.631
- Indirect sale of a company resident in Peru
- Tax effects of the judicial declaration of the nullity of the incorporation of a company
- Clarification of Official Letter No. 2221 of 2023