Peru Implements “Netflix Tax” on Digital Platforms to Expand Tax Base and Compliance Requirements

• Peru introduced a new tax on digital platforms on 4 August 2024
• The tax is known as the “Netflix tax” and is part of the government’s tax agenda to expand the tax base
• The tax will be an 18% General Sales Tax (GST) on digital services and intangibles acquired by Peruvian individuals from nonresident providers
• The tax will impact streaming activities, cloud storage, social media access, online publications, conference calls, digital intermediation, and software purchases
• Digital providers must obtain a Peruvian tax ID, collect GST from consumers, and pay it to the tax authorities
• Nonresident providers must file a GST return and pay tax monthly
• Payment facilitators like Peruvian banks will collect and withhold GST if providers do not comply with requirements

Source: bdo.global

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.