Peru implemented Value Added Tax (Impuesto General a las Ventas (IGV)) in August 1991. VAT is operated by the General Tax and Customs Administration Authority (SUNAT). The rules governing the indirect tax are contained within the Unique Ordered Text of the Law on VAT and Excise Duties (Texto único ordenado de la ley del impuesto general a las ventas e impuesto selectivo al consumo)
Should you register for Peruvian VAT?
Business must register if providing taxable supplies. This includes non-incorporated businesses if providing the supplies on a regular basis. Taxable supplies include:
- Supply of movable and immovable goods
- Supply of intangible goods
- Imported goods
- Services providing by foreign service providers
- New real estate and construction services
July 18, 2017
Peru abandoned plans to cut its VAT rate from 18% to 17% on 1 July 2017. The country’s fiscal deficit has widened recently, leading...
January 12, 2017
Peru has announced plans to reduce its standard VAT rate by 1% to 17% from 1 July 2017. The measure has already been delayed...
October 27, 2014
Peru this month became the latest South American country to introduce electronic VAT invoices. Ecuador and Mexico also recently introduced such measures. The Tax...