In accordance with Legislative Decree 1623, the Executive Branch of Peru, using powers delegated by Law, has regulated the application of VAT (“IGV”) to digital services provided by non-resident suppliers and the importation of intangibles when the user or purchaser is a natural person domiciled in Peru who does not engage in business activities.
🔔 Starting October 1st - streaming services and other digital services will be required to pay 18% VAT through the mechanisms established in the regulation.
💻 Taxes Digital Services
Online access and/or transmission of images, series, movies, documentaries, short films, videos, music, and other digital content via streaming or other technology.
Data storage services.
Access to social networks and the provision of additional content or functions within them.
Services provided by online magazines or newspapers.
Remote conferencing services.
Intermediation in the supply and demand of goods or services.
👤 Taxable Person
Individuals not engaged in business activities who use digital services provided by non-residents or import intangibles for use or consumption in Peru.
🇵🇪 Use of Digital Services in Peru
Services are considered used in Peru when the user has their habitual residence in the country. Habitual residence is determined by:
The IP address through which the digital services are provided is associated with Peru.
The country code of the SIM card used for accessing digital services is associated with Peru.
Payment for digital services is made using credit/debit cards or other financial products issued by Peruvian financial institutions.
The address registered with the digital service provider is in Peru.
💼 Tax Collection
The non-resident provider of digital services or intangibles acts as a collection agent for the tax. They must register with the RUC (Tax ID) without needing to establish a domicile or permanent establishment in Peru, nor is it necessary for their representative to reside in the country.
The collected tax must be paid within the first 10 business days of the following month, as per Tax Authority (SUNAT) regulations, which may also require the submission of tax returns.
⚠️ Particular Cases
In cases where the non-resident provider does not register with the RUC, does not submit a tax return, or does not pay the collected tax, the tax will be withheld by local payment processors (banks, other financial institutions, electronic money issuers when using credit/debit cards, electronic transfers using digital wallets, etc.).
📝 Regulatory Standards
The Ministry of Economy and Finance (MEF) will issue regulatory standards for the application of the decree.