Peru’s President has enacted Legislative Decree No. 1623, revising the General Sales Tax (IGV) and Selective Consumption Tax in response to the growing digital economy. This decree, under Law No. 32089, aims to regulate the taxation of digital services and intangible goods purchased online.
Key provisions include:
- Individuals using digital services from non-resident providers or importing intangible goods through the internet will now be subject to IGV, regardless of whether they engage in business activities.
- The decree outlines the criteria for determining when digital services and intangible goods are considered consumed in Peru.
- Non-resident providers of digital services or goods will act as tax agents, responsible for withholding and reporting the tax. They must register with the National Superintendence of Tax Administration (SUNAT) and comply with new reporting requirements.
- Payment of the tax can be made in either Peruvian soles or U.S. dollars, with specific guidelines for conversion and declaration.
This legislative update seeks to align Peru’s tax regulations with international standards and the recommendations of the OECD, addressing the challenges posed by the digital economy.
The new tax regulations in Peru are set to come into effect on October 1, 2024.
Source: elperuano.pe
