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VAT

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Chilean IRS Clarifies VAT Rules for Leasing Machinery and Related Services Under General Anti-Avoidance Rule

  • Chilean Internal Revenue Service issued Letter No. 2069/2024 regarding VAT rules for leasing machinery and related services
  • Clarification sought by a joint stock company on VAT application under general anti-avoidance rule
  • General anti-avoidance rule does not apply unless activities meet criteria for a professional society
  • Providing personnel services prevents classification as a professional society
  • VAT applies to all services exchanged for remuneration
  • Certain professional services exempt from VAT if criteria are met
  • Leasing machinery, with or without operators, subject to VAT

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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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