The current VAT rates are as follows:

• 19% standard VAT rate; and
• Exempt: exports of goods; entrance sporting and cultural events; real estate; freight services; used cars and lorries; international passenger transport; and education.

There are detailed rules controlling the recording and processing of transactions for VAT. These include guidelines on:

• Invoice requirements, including the requirement for credit notes;
• Language requirements;
• Credit notes and corrections; and
• What accounting records must be maintained and for how long.

VAT Invoices must include the following information:

• Clear identification that the invoice is a VAT invoice;
• Name and tax payer number of the vendor;
• Name and tax payer number of the customer;
• Unique VAT invoice number;
• Date of the invoice;
• Gross, VAT and net values;
• Any foreign currency amounts must be translated according to Central Bank rates; and
• All amounts must be in Chilean pesos (except export invoices)

Since January 2014, all invoices must be electronic. To benefit from an export VAT exemption, invoices must be in accordance with the National Customs Service and stamped by the Internal Revenue Service.

Invoices to consumers may be simplified as a till receipt. An invoice need not be issued for transactions below Chilean pesos 180.

Tax payers must submit monthly returns. These are due by the 12^th of the month following the reporting period. However, electronic returns may be submitted by the 20^th.

In addition, large taxpayers and exporters must file a sworn filing, listing all taxable transactions submitted in each VAT return. This filing is a bi-annual submission.

Foreign companies may not reclaim Chilean VAT incurred.

Chile has strict rules on books and accounting records that the tax payers must maintain for six years or more. These include:

• Libros de control (Control Books);
• General ledger;
• Inventory ledger;
• Sales and purchases ledgers;
• Records of employee payrolls; and
• Cash books.

On request, tax payers may have to supply electronically lists of sales invoices.