Government attempts to impose VAT on platforms stalled by Congress
At the end of 2020, a Bill was put forward in Congress to introduce the obligation to charge VAT by non-residents on B2C transactions and digital platforms. But this was again blocked at the end of December 2021.
Peru is looking to follow the examples of Mexico, Columbia,Paraguay and Chile.
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:
VAT on digital services
- 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.
Verify the right VAT or GST calculations on individual or batch transactions with our Advisor and Auditor services. This includes remote e-services.
Central and South America VAT on digital services
| Comments (click for details) | Rate | Date | Threshold | Comments |
| Argentina | 21% | Apr 2018 | – | |
| Bahamas | 10% | Jan 2015 | BSD 100,000 | |
| Barbados | 17.5% | Dec 2019 | BBD 200,000 | |
| Bolivia | 13% | Nov 2022 | - | |
| Brazil | n/a | n/a | n/a | Various proposals |
| Chile | 19% | Jun 2020 | Nil | |
| Colombia | 19% | Jan-18 | Nil | |
| Costa Rica | 13% | Oct 2020 | Nil | Withholding VAT option |
| Dominican Republic | 18% | 2023 | Nil | Currently withholding VAT |
| Ecuador | 12% | Sep 2020 | – | |
| El Salvador | 13% | 2022 | - | Replace Withholding VAT |
| Guatemala | 12% | TBC | ||
| Honduras | 15% | 2022 | HNL 250,000 | |
| Panama | 10% | 2022 | Withholding VAT | |
| Paraguay | 10% | Jan-21 | Nil | Withholding VAT; 4.5% DST |
| Peru | 18% | 2022 | Nil | Withholding VAT |
| Puerto Rico | 10.5% | Jan 2020 | $100,000; or 200 transactions | Marketplaces |
| Suriname | 10% | Jan 2023 | SRD 500,000 | |
| Uruguay | 22% | Jan 2018 | Nil | VAT and Withholding Tax |
