The Internal Revenue Service (IRS) of Chile published a document Letter No. 2511 containing the clarifications on VAT exemption for export services. Accordingly to those rules, a Chilean consultancy company offering administrative business management services to a foreign company is exempt from VAT as stated in the list of export services by virtue of Article 12, letter E, No. 16, of the Law on Sales and Services Tax (LIVS) maintained by the National Customs Service (Servicio Nacional de Aduana).
According to the National Customs Service, a service is VAT exempt if:
Since June 2020, the Chilean IRS (in Chilean Servicio de Impuestos Internos or SII) has provided publications of the regulation and rulings on the taxation of digital services. Foreign digital service companies have had VAT registration and collection obligations for their sales to apply, collect and remit 19% VAT to Chile-based customers since the introduction of the rules.
NOTE: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.