- Peru’s President enacted Legislative Decree No. 1623 to revise the General Sales Tax and Selective Consumption Tax in response to the digital economy
- Individuals using digital services from non-resident providers or importing intangible goods online will now be subject to IGV
- Criteria for determining when digital services and intangible goods are consumed in Peru are outlined in the decree
- Non-resident providers will act as tax agents, responsible for withholding and reporting the tax
- Payment of the tax can be made in Peruvian soles or U.S. dollars, with guidelines for conversion and declaration
- The update aims to align Peru’s tax regulations with international standards and OECD recommendations
- The new tax regulations will come into effect on October 1, 2024.
Source: globalvatcompliance.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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