The VAT treatment of materials printed and delivered in Chile depends on the country of the billing address of the customer. When a local Chilean customer places an order for print products on the Gelato website, it enters into a service contract with Gelato Chile. The local Chilean customer will receive an invoice from Gelato Chile. Gelato Chile is legally obligated to pay VAT on customer transactions in Chile. For domestic sales from Gelato Chile to local customer, 19% VAT will be added.
If the customer billing entity is outside Chile and would like to pay for printed materials delivered in Chile, Gelato AS will bill the customer for the printed material. Because Gelato AS is not registered in Chile for TAX purposes, no Chilean VAT will be included in the invoice from Gelato AS to the non-Chilean customer.