Copying and distributing are prohibited without permission of the publisher

Chile: Commission services as exports

11 July 2017

Email a friend
  • Please enter a maximum of 5 recipients. Use ; to separate more than one email address.


Loreto Pelegrí Bernardita Parodi

On October 26 2016, Law No. 20,956 was published in the Official Gazette. The purpose of this law is to encourage Chilean productivity. As such, it introduced a series of measures aiming to achieve this target.

Increasing the export of Chilean services to abroad is one of the goals of this law, for which it broadened the VAT exemption that benefits these services contained in Article 12(E)(16) of the VAT Law, which provides this VAT exemption for services that have been defined as export services by the Chilean Customs Authority, among the establishment of other requirements and control rules.

In this context, the Chilean Customs Authority, by means of Resolution N° 2,511 of 2007 that complies with Article 12(E)(16) of the Chilean VAT Law, among other things, provided that services rendered by commission agents could not qualify as export services. However, in the context of Law No. 20,956 that encourages the export of services, the National Customs Authority issued Resolution No. 990 on February 9 2017, which modifies Resolution No. 2511 of 2007, with the aim of being in line with the objectives of Law No. 20,956.

Due to the above, Resolution No. 990 of 2017, expressly eliminated the prohibition established by Resolution No. 2,511 of 2007 for services rendered by commission agents in respect to the VAT exemption. Therefore, as of the entry into force of this resolution, commercial services rendered by commission agents could be qualified by the customs authority as export services, benefiting from the VAT exemption.

Once a service has been qualified as an export service by the customs authority, this service is included in a list of export services issued by the authority. Once included in the export services list, it is not necessary to require the qualification again. Therefore, all taxpayers that provide such type of services benefit from the exemption.

The current list of export services issued by the customs authority was updated on February 21 2017 and does not include services rendered by commission agents. Therefore, commission agents that intend to benefit from this exemption will need to require such qualification, following a procedure established by the customs authorities.

Loreto Pelegrí (loreto.pelegri@cl.pwc.com) and Bernardita Parodi (bernardita.parodi@cl.pwc.com)
PwC
Website: www.pwc.cl






International Tax Review Profile

RT @KPMG: It's time to change the narrative #thefutureisinclusive #WEFLIVE #WEF18 https://t.co/Ahd93iGQmb

Jan 22 2018 04:26 ·  reply ·  retweet ·  favourite
International Tax Review Profile

We believe this is the first time Parliament has been divided on tax treaty ratification in the UK. A debate on a… https://t.co/toFGoVaZ3E

Jan 22 2018 12:00 ·  reply ·  retweet ·  favourite
International Tax Review Profile

RT @SjoerdDouma: Dutch Supreme Court clarifies meaning of 'managed and controlled' in tax treaty Netherlands-Singapore https://t.co/YMUdfqj

Jan 19 2018 04:42 ·  reply ·  retweet ·  favourite
International Tax Review Profile

RT @OECDtax: Read the public comments received on new #tax rules requiring disclosure of #CRS avoidance arrangements and offshore structure…

Jan 18 2018 04:39 ·  reply ·  retweet ·  favourite
International Tax Review Profile

RT @EU_Taxud: Press conference with @pierremoscovici today from 11.00h on the new system for VAT rates and on VAT system for SMEs. 🎥 Watch…

Jan 18 2018 09:56 ·  reply ·  retweet ·  favourite
International Correspondents