The Peruvian standard VAT rate is to be cut twice over the next two years.
The current headline VAT ( Impuesto General a las Ventas IGV) rate is 15%. A new draft law, introduced this week, proposes cutting it to 15% on 1 January 2015. If the budget consolidation continues to plan next year, it will then be cut again to 14% in 2016.
There will be no change to the additional sales tax, Impuesto de Promoción Municipal IPM, which is charged at 2% in addition to IGV, will remain unchanged.
Basic foodstuffs, public transport, some financial services and exports will remain exempt from IGV.
VP Global Indirect Tax
Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.