- Peru enacts regulations for 18% VAT on use of digital services by individuals
- Supreme Decree establishes regulations for Legislative Decree 1623
- Nonresident digital service providers and sellers required to register with VAT Registry and remit VAT to Peruvian Tax Authority
- VAT applies to individuals’ use of digital services and importation of intangibles via internet
- Nonresidents must withhold 18% VAT beginning 1 October 2024
- Supreme Decree 157-2024-EF provides regulations for Legislative Decree 1623
- Responsibility for VAT payment falls on Peruvian financial entities and National Bank if nonresident fails to register or pay
- VAT withheld by nonresident can be used as input VAT by individual if engaged in business activities
- Procedure for nonresident to set off excess payments against future payments or request refund
- Topics yet to be regulated include registration of nonresident in VAT Registry and option to pay tax in Peruvian sols or US dollars.
Source: globaltaxnews.ey.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.
