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Peru cuts VAT to 17%

  • VAT
  • 12 January 2017 | Richard Asquith

Peru cuts VAT to 17%

Peru has announced plans to reduce its standard VAT rate by 1% to 17% from 1 July 2017.

The measure has already been delayed several times in recent years as the country has failed to achieve matching tax collection targets.  The government is targeting a VAT rate of 15% eventually.  In addition to VAT, a 2% Municipal Sales Tax is levied on most taxable supplies.

The latest target, 7.2% tax revenues as a share of GDP, will be assessed on 1 May 2017 before the VAT cut is implemented.

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VP Global Indirect Tax
Richard Asquith
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.