International VAT Guides – Peru

VAT rates in Peru 

How much is VAT in Peru? 

The Peru VAT  regime is an exemplary picture of a highly modern indirect tax framework. Peru has updated its indirect tax regime to align with international standards regarding the digital economy. In December 2024, the Government enacted a Legislative Decree that mandated the registration of non-resident providers of digital services or digital products for VAT purposes. 

General Sales Tax (IGV) in Peru is composed of two components: the Value-Added Tax (IGV) and the Selective Consumption Tax. The general rate is 18%, resulting from the combination of IGV(VAT) at 16% and the Municipal Tax at 2%. 

VAT threshold in Peru 

To reduce the levels of unequal playing field within the ranks of domestic and non-resident providers of digital services or products, the Government of Peru, led by the Ministry of Finance, introduced a special Legislative Decree that introduced particular tax rules for foreign providers of digital services or intangible products. 

The VAT Peru regime has been extended to include these providers in the VAT network. The move was expected for some time, as many other Latin American countries have adopted similar regimes as tools to accumulate public funds, safeguard local businesses, and protect consumers as well. 

As of October 2024, new rules have been introduced into the indirect tax system, specifically designed for the digital economy. There is no threshold for non-resident providers of digital services or intangible products. From the first sale, they are obliged to collect tax. 

There is no VAT threshold in Peru for non-resident digital platform providers or marketplaces. 

VAT Taxable Activities in Peru

Types of taxable activities that trigger mandatory VAT registration:

• Supply of goods and services for consideration;
• Services performed abroad are enjoyed in the country
• Imports of goods and services; 
• Overseas sales of low-value goods to customers in Peru
• Provision of digital services to customers in Peru

Tax Representative in Peru 

Non-resident digital service providers who wish to register and collect Peru VAT are, in most cases, free to choose their tax representatives.

Tax registration 

Simplified tax registration 

Non-resident providers of digital services or digital products that act as VAT withholding or collection agents are required to register for VAT from the commencement of their business activity. In most cases, they are required to collect VAT from the first sale of the first day of the month following the month in which they commenced their activity. 

The registration should be processed online via the Revenue Agency website by submitting a specific online registration form reserved for these providers.

From October 1, 2024, non-resident providers of digital services or products to end customers(B2C) residing in Peru are required to register for VAT. Registration should be completed in the Taxpayers Registry on the Revenue Agency website. (RUC) 

VAT on Electronically Supplied Services in Peru 

Digital Services

Non-resident providers of digital services or digital products that act as collection or withholding agents are required to collect VAT from the first calendar month of the month following the month in which they have started their business activity. 

These persons should register online in a prescribed manner. 

Non-resident providers of digital services or digital goods are required to collect and report tax on all B2C sales when the customer is resident in the country. A proper validation mechanism for B2C transactions should be in place to accurately determine the buyer’s position. 

There are special rules for digital marketplaces when they act as intermediaries in the underlying supply. 

In the cases where the digital platform operator or digital service provider hasn’t registered for VAT in due time, or there have been repetitive actions of late filings or late payments, when the conditions are met, the domestic payment service provider(bank or financial institution) is obliged to act as a VAT withholding agent.

In these circumstances, the PSP will be accountable for tax payable on the underlying transaction. The VAT is calculated based on the total amount transferred to the foreign provider. 

How much is VAT in Peru for Electronically Supplied Services?

 The VAT rate Peru for most digital goods and services is 18%. However, this shouldn’t be followed blindly.

Taxable Digital Services in Peru

The following types of digital services trigger mandatory VAT registration of non-resident providers:

• Audio and video streaming services 
• SaaS services
• E-books and publications 
• Travel arranging services

Marketplace and Digital Platform Operators’ Rules

Operators of non-resident digital marketplaces that intermediate in the demand and supply of digital products and services are, in most cases, mandated to calculate VAT on their commission fees, charge on the user and/or supplier; in addition to collecting or withholding VAT on the underlying supply, and to report these taxes to tax authorities. 

Invoicing Rules

A VAT-registered non-resident supplier of remote services isn’t obligated to issue a tax invoice to its customers. 

The minimum requirements of the invoice are the following: 

General information 

• Date of invoice issuance 
• Consecutive invoice numbering
• Invoice type specification
• Date and time of supply

Seller information

• Company name
• Full address(head office)
• Billing address if different from the company address
•  VAT number

Customer information

• Name 
• Full address
• VAT number(if applicable)

Fiscal Information

• Tax amount for each type of goods or services supplied
• Net value per tax rate
• Distinct line of gross value per tax rate or tax-exempt supply
• Type of the transaction by reference to the categories indicated in the VAT Act 
• Total tax  amount 
• Invoice Total tax exclusive
• The rate of any discount
• Total invoice amount

Foreign Currency Invoice in Peru  

In most cases, issuing an invoice in a foreign currency is permitted.

VAT Return 

Simplified Return 

Non-resident providers of digital products or services that act as VAT withholding or collection agents should file monthly VAT returns online. They should use the prescribed template for this occasion and follow the simplified method for submitting and paying returns. 

They can submit and pay returns in local currency or in USD. The currency chosen in January or in any other month(which is the first submission month) should be used until the end of the calendar year. 

VAT Return

Penalties for late reporting and omitted declarations 

One of the most common mistakes made by non-resident digital service providers when commenting on their trading activities in Peru is failing to register, file, or pay local VAT on time to the tax authorities. 

The following penalties could follow the lack of compliance: 

• No filing – 10% fine of the UIT (S/ 515 in 2025) for the general regime 
• Late filing and late payment – Reduced fine (5% UIT if voluntarily corrected before notification)
• Repetitive late filings – Suspension of TIN or deletion from the taxpayers’ registry 

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