The 2012 worldwide VAT, GST and sales tax guide

110 C HILE
in addition to the obligation to register an address in Chile, he or
she must also be in possession of a valid visa that allows him or
her to act in this capacity.
Late-registration penalties. Penalties and interest are assessed for
late registration for VAT purposes. Penalties also apply for VAT
fraud.
D. VAT rates
The terms “taxable transfer” and “taxable services” refer to the
transfer of goods and the provision of services that are liable to
VAT. The term “exempt supplies” refers to the supply of goods
and services that are not liable to VAT. Exempt supplies do not
give rise to a right of an input tax deduction.
In Chile, the VAT rate is 19%. No reduced or higher rates apply.
However, additional taxes ranging from 15% to 50% may be
imposed under the VAT law on the provision of specific items,
such as jewelry and alcoholic beverages. In addition, transactions
made by certain entities are exempt from VAT.
The following table lists examples of exempt transfers of goods
and provision of services (this list is not exhaustive).
Examples of exempt transfers of goods and supply of services
Used motorized vehicles
Importation of goods by the National Ministry of Defense
Certain real estate transactions
Admission to artistic, scientific or cultural events, sponsored by
the Public Education Ministry
Premiums for or payments from life insurance contracts
Exports of goods
Entrance to sporting events
Importation of cultural or sporting awards and trophies
Services provided by independent workers
Freight from other countries to Chile and vice versa
E. Time of supply
The time when VAT becomes due is called the “time of supply”
or “tax point.” The basic tax point for the transfer of goods is the
earlier of the following:
• The time when the goods are delivered
• The time when the invoice is issued
The basic tax point for the provision of services is the earlier of
the following:
• The time when the related invoice is issued
• The time when a full or partial payment of the consideration is
received
Imported goods. For imports, VAT is due when the goods clear all
customs procedures.
F. Recovery of VAT by taxable persons
A VAT taxpayer may recover input tax (also known as VAT credit),
which has been charged on the goods acquired by it and the services
provided to it, if these acquisitions are directly related to the