IVA

The tax code of Chile says that if a non-resident of Chile pays his\her hotel bill in foreign currency then he\she is exempted from the 19% IVA tax. As easy as this sounds for the FPSAC organizing committee, things are not at all that simple. Many hotels show a price in pesos and a price in dollars. Unfortunately, most of the time the price in dollars is outrageously high, meaning that even though foreigners are exempted from the 19% IVA tax when paying in foreign currency, they end up paying much more if they do so. For instance, a hotel with which FPSAC has an agreement for a special rate of CLP$36.000+IVA (USD$75, USD$89 with IVA) insists that the price in dollars is USD$120. In this case, the FPSAC organizing committee recommends that you ask to pay your hotel bill in pesos (which you are entitled to do), even though this means you have to pay the 19% IVA tax. The FPSAC organizing committee would also be very pleased if many lodging at this hotel insisted in paying the equivalent of CLP$36.000 pesos in dollars (which is what the hotel gets anyway when someone pays in pesos, the 19% tax going to the Chilean revenue services). Great success stories should be sent to fpsac2008@inst-mat.utalca.cl.