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Re: Construction material cost in Chile and what is available

Posted: Thu Oct 18, 2018 12:12 am
by CachiGringo
admin wrote:
Tue Oct 16, 2018 9:54 am
it is a sales tax. no one is exempt.

but, what chile makes up for in sales tax, it does not charge in property tax.
While in the South recently, I was able to skirt around paying the VAT by providing my passport and talking some hardy gringo while my native chilean S.O. kept quiet and watched me fumble. This was only for big ticket things(for us) like nightly accomodations, bus/airfare, and some other ~couple hundred usd equivalent purchases. I basically came from the point of 'if your don't charge me sales tax, ill spend 15% more at your establishment', and we were wondering if that would work on a large order at a sodimac/chilemat type establishment

Re: Construction material cost in Chile and what is available

Posted: Thu Oct 18, 2018 2:29 am
by eeuunikkeiexpat
Ummm, the VAT exemption does indeed work for many accommodations as that is the only exemption a non-resident foreigner can get per the SII.

The lodging establishment can offer it if it has registered to offer it with SII. The requirements: a tourist in Chile less than 60 days paying with USD cash or foreign credit card. Taking a photocopy of passport and entry stamp is required to be compliant.

Any other luck you had getting a real tax-free discount I bet came without a boleta for the sale and risk to the vendor if SII catches them.

Re: Construction material cost in Chile and what is available

Posted: Thu Oct 18, 2018 7:34 am
by 41southchile
eeuunikkeiexpat wrote:
Thu Oct 18, 2018 2:29 am
Ummm, the VAT exemption does indeed work for many accommodations as that is the only exemption a non-resident foreigner can get per the SII.

The lodging establishment can offer it if it has registered to offer it with SII. The requirements: a tourist in Chile less than 60 days paying with USD cash or foreign credit card. Taking a photocopy of passport and entry stamp is required to be compliant.

Any other luck you had getting a real tax-free discount I bet came without a boleta for the sale and risk to the vendor if SII catches them.
Exactly what I was going to say, I have only ever heard it apply to hotels and paying with USD or foreign credit card. Sometimes some small scale service providers and the like can get away with it, maybe on small ticket jobs say a few hundred dollars USD worth, but it makes no sense to me as to why someone providing goods would do it, as presumably they would have already paid IVA on their purchases of said goods when they bought wholesale, why would they buy with iva and sell without ?
Anyway just watch out trying to scam IVA, Their IVA tax collection here is very good here and they know everything as its all electronic, and so many people tried to scam IVA that they generally know all the tricks and dont look kindly on it to make an example of the perp.
Nothing surer than death and taxes in this life, Chiles IVA system is very efficient because it has very very few exceptions. Not paying sales tax or IVA is fraud, its tax evasion not tax avoidance, big difference, so SII is not going to look kindly on the person selling without sales tax. For a few hundred bucks I wouldnt risk it personally, and anything larger would be too hard to hide, so why risk it. But if you still want to put vendors in that situation by promising to spend a whooping 15 percent more in their establishment then thats up to you I guess, but do so knowing you are putting them in a potentially risky situation if they get caught.