Chile Forum

Don't know if this helps you but my wife & I were car shopping in Rancagua last year and all the used vehicles had IVA. From my understanding IVA is a consumption tax not an import tax.

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Excerpt from LEY SOBRE IMPUESTO A LAS VENTAS Y SERVICIOS DL Nº 825 with modification due to LEY 19633, et alia, granting exemption as noted below. Note the exceptions to the exemption, including vehicles which had been rentals subject to purchase option and used vehicles which were not subject to and/or did not pay IVA during initial transaction. You can read the letra chica as well as I can.

http://www.leychile.cl/Navegar?idNorma=6369

As ever, don't take legal advice from engineers. DYODD and refer to laws currently in force.

LEY 19633
Art. 5º b)
D.O. 11.09.1999

NOTA 1.1

Ley 20494
Art. 3 Nº 1 a)
D.O. 27.01.2011

LEY 18630
Art. 1° E
D.O. 23.07.1987

Ley 20494
Art. 3 Nº 1 b)
D.O. 27.01.2011

Ley 20494
Art. 3 Nº 1 c)
D.O. 27.01.2011


NOTA: 1.1
Las modificaciones introducidas por el art. 1° de la
Ley 18.630, regirán a contar del 1° de octubre de 1987.


PARRAFO 4°
De las ventas y servicios exentos del impuesto


Artículo 12°- Estarán exentos del impuesto
establecido en este Título:
A.- Las ventas y demás operaciones que recaigan
sobre los siguientes bienes:
1º. Los vehículos motorizados usados, excepto en
los siguientes casos: el previsto en la letra m) del
artículo 8º; los que se importen y los que se
transfieran en virtud del ejercicio, por el comprador,
de la opción de compra contenida en un contrato de
arrendamiento con opción de compra de un vehículo.
Asimismo se exceptúan de la presente exención los
vehículos motorizados usados que no hayan pagado el
impuesto al momento de producirse la internación por
encontrarse acogidos a alguna franquicia, de acuerdo
con lo preceptuado en los incisos segundo y tercero
de la letra a) del artículo 8º.

thanks px, very helpful. also, fwiw, heard from a lawyer friend that one of the exemptions are businesses who buy and sell a new car within 4 years. apparently, they can push the iva to the next owner. used and iva doesn't sound like such a deal to me.

mcmc wrote:thanks px, very helpful. also, fwiw, heard from a lawyer friend that one of the exemptions are businesses who buy and sell a new car within 4 years. apparently, they can push the iva to the next owner. used and iva doesn't sound like such a deal to me.

That is why when you go to register a used or new vehicle (Permiso de Circulación) there is a little checklist that they have at the municipalidad that includes checking for evidence of that IVA having been paid.

In the case of the deferred IVA payment you mention, it isn't clear whether the amount is pro-rated somehow for the residual value of the used vehicle at the end of those years. Perhaps someone else can answer that.