VATLive > Blog > Peru > Peru VAT on foreign digital services bill

Peru VAT on foreign digital services bill

  • Oct 11, 2020 | Richard Asquith

Peru is set to become the latest country to impose VAT on digital or electronic services provided by non-resident businesses. A bill has been presented to the Parliament last month for potential implementation in 2021.

You can review Avalara’s global VAT on digital services tracker here.

Peru is aiming for a withholding VAT model rather than compelling foreign providers to VAT register, charge, collect and remit the VAT. The obligation to hold back the VAT would fall on payment providers – credit card merchants; debit cards; wire transfers; ewallets etc. B2B transactions would be subject to the reverse charge – the recipient would report the VAT through their own VAT return.

VAT in Peru is currently 18%. The services included within the bill are:

  • Software support;
  • Technical support to a customer’s network;
  • Storage of information (data warehousing);
  • Implementation of hosting (application hosting); 
  • Application services supply (application service provider - ASP); 
  • Storage of website (web hosting);
  • Electronic access to consulting services;
  • Advertising;
  • Online auctions;
  • Information distribution; 
  • Access to an interactive website;
  • Interactive training; and 
  • Online sale sites/portals. 

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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 can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 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.
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