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Peru VAT non-resident digital services

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
Uruguay 22% Jan 2018 Nil VAT and Withholding Tax

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