Which professional services are subject to VAT? Learn more about the new regulation
Posted: Wed Jan 22, 2025 8:44 am
The application of the Value Added Tax (VAT) on professional services came into force, within the framework of Law 21,420. This means that services that were previously exempt from this tax must add 19% to the value of the service and issue the corresponding tax documentation.
Which professional services must pay VAT?
All types of professional services are required to pay this tax, except for outpatient health services (dentists, psychologists, physical therapists, among others) and those that were already exempt from the Sales and Services Tax Law, such as passenger transportation and education. Individuals who issue honorarium receipts are also not required to pay the tax.
If you want to know the complete list of overseas chinese in australia data that must pay VAT, click on this link .
Issue your electronic invoices and receipts with Bsale
What professional services are exempt from VAT?
The following activities were exempt:
Radio broadcasts
Television programming and broadcasts
News agency activities
Private medical centers (outpatient care facilities)
Private dental care centres (outpatient care facilities)
Nursing care activities in institutions
Board of directors of buildings and condominiums (depending on the characteristics of the taxpayer)
Do you need to issue electronic invoices? Learn how to do it in this article about electronic invoicing in Chile.
Income from professional companies is also exempt from VAT.
Professional companies are formed by civilians dedicated exclusively to the provision of professional services or advice, for which they have a degree and are registered with the corresponding Association. According to the SII, the income of this type of company will also be exempt from VAT, as long as they are duly registered. To do so, they must meet the following requirements:
Be a partnership dedicated exclusively to providing professional services or advice.
Which professional services must pay VAT?
All types of professional services are required to pay this tax, except for outpatient health services (dentists, psychologists, physical therapists, among others) and those that were already exempt from the Sales and Services Tax Law, such as passenger transportation and education. Individuals who issue honorarium receipts are also not required to pay the tax.
If you want to know the complete list of overseas chinese in australia data that must pay VAT, click on this link .
Issue your electronic invoices and receipts with Bsale
What professional services are exempt from VAT?
The following activities were exempt:
Radio broadcasts
Television programming and broadcasts
News agency activities
Private medical centers (outpatient care facilities)
Private dental care centres (outpatient care facilities)
Nursing care activities in institutions
Board of directors of buildings and condominiums (depending on the characteristics of the taxpayer)
Do you need to issue electronic invoices? Learn how to do it in this article about electronic invoicing in Chile.
Income from professional companies is also exempt from VAT.
Professional companies are formed by civilians dedicated exclusively to the provision of professional services or advice, for which they have a degree and are registered with the corresponding Association. According to the SII, the income of this type of company will also be exempt from VAT, as long as they are duly registered. To do so, they must meet the following requirements:
Be a partnership dedicated exclusively to providing professional services or advice.