Costs of ageing population forces broadening of VAT net
Chile is to broaden the scope of services subject to its Value Added Tax regime from January 2023. This is one of a range of measures being introduced to meet the rising costs of the South American state’s ageing population.
The current VAT rate in Chile is 19%.
Currently, VAT only applies on a subscribed list of services contained within in the Income Tax Law. The amendments will bring a wide range of services into the tax net for the first time, including professional and consulting services. The following services will remain exempt:
- Passenger transport (public)
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