In a recent update, Peru’s legislative decree No. 1623 has established new filing deadlines and obligations for non-domiciled taxpayers regarding the General Sales Tax (IGV). These regulations, set to come into effect from October 1, 2024, will impact non-domiciled entities engaged in providing digital services or intangible goods to Peruvian consumers.
Key Deadlines and Requirements:
- Monthly Filing and Payment: Non-domiciled entities that act as withholding or collection agents must file their tax declarations and remit the IGV collected within the first ten business days of the month following the month in which the tax was collected.
- Annual Information Declaration: In addition to monthly obligations, non-domiciled entities may be required to submit an annual information declaration if mandated by SUNAT, Peru’s tax authority. Specific deadlines for this declaration will be outlined in a resolution from SUNAT.
- Initial Filing Requirement: Non-domiciled entities that begin operations or continue operations until September 30, 2024, will need to start withholding or collecting IGV from October 1, 2024. The first filing for these entities will be due in early November 2024.
Important Points to Note:
- Taxpayer Definition: Individuals using digital services from non-domiciled entities in Peru, even if not conducting business activities, are considered IGV taxpayers.
- Collection Mechanism: Non-domiciled entities providing digital or intangible goods must register in Peru’s Single Registry of Taxpayers, though they are not required to establish a physical presence in the country. They will act as withholding agents for the IGV.
- Criteria for Consumption: Digital services and intangible goods are deemed consumed in Peru if the user’s habitual residence is in the country, as determined by factors such as IP address, SIM card country code, payment methods, or registered address.
- Obligations and Payment: Non-domiciled entities must verify the residency of users and ensure proper tax withholding. Taxes collected must be declared and paid monthly, with payments accepted in either national currency or U.S. dollars.
- Facilitators’ Role: If non-domiciled entities fail to comply with registration or payment requirements, entities facilitating payments, such as financial institutions, are obligated to withhold or collect the tax on their behalf.
- Tax Credit Use: Taxes withheld from individuals engaged in business activities can be used as a tax credit under certain conditions.
Source: elperuano.pe
