According to the submission, a company domiciled and resident in Spain requested clarification on the VAT treatment applicable to services provided in Chile, consisting of software installation in wind farms, and the procedure for recovering the VAT charged.
The tax authority indicates that, according to the definition of a taxable “service” under Article 2 No. 2 of the VAT Law (LIVS), all services provided or used within Chilean territory are subject to VAT.
Therefore, services performed within Chile, including those described, are generally subject to VAT in accordance with the territoriality principle established in Article 5 of the VAT Law.
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