VAT taxpayers

Individuals who do not perform business activities and who contract digital services in Peru rendered by nonresidents are considered VAT taxpayers. These individuals do not need to be habitual in contracting these services.

Habitual residence of the service user

Services are considered consumed or contracted in Peru if the service user's habitual residence is in Peru. Residence is considered habitual when the following conditions are met (the Regulations may establish additional conditions):

1. The Internet Protocol (IP) address or other means of geolocation assigned to the device through which the digital service is provided corresponds to Peru.
2. The country code of the SIM card or other technology that replaces it corresponds to Peru.
3. The payment of digital services is made using credit cards, debit cards, any support for the use of electronic money or any other product provided by entities of the Peruvian financial system.
4. The address that the individual registers with the digital service provider, whether it is user data or the address for the issuance of proof of payment, is in Peru.

Digital services

Digital services are those provided to users via the internet or other networks, characterized by their automation and dependence on information technology. They include the following services, among others:

• Online access and/or transmission of images, series, movies, films, documentaries, short films, videos, music and any other digital content, through streaming or other technology, e.g., Netflix, Disney+, Amazon Prime Video, Spotify, HBO Max
• Information storage, e.g., Google Drive, DropBox, Microsoft OneDrive, iCloud, Amazon Drive
• Access to social networks and/or the provision of additional content or functions, e.g., LinkedIn Premium
• Service provided by online magazines or newspapers, e.g., The New York Times
• Remote conferencing services, e.g., Zoom, Microsoft Teams
• Intermediation in the supply and demand of goods or services, e.g., Airbnb, Uber

Intangible goods imported via the internet

Intangible goods imported via the internet are those acquired for permanent download by the purchaser through the internet or other networks, e.g., software.

VAT collection

VAT withholding or collection agents

• When the user or importer does not carry out a business activity, the nonresident entity who provides the digital service or from whom the good is acquired acts as a withholding or collection agent for the tax in the following month in which the entity starts operations in Peru. These entities must be registered in the Peruvian tax registry (RUC). 

RUC

• Nonresident entities: (i) are not required to establish a domicile in Peru, (ii) their legal representative is not required to be domiciled in Peru, (iii) their registration does not imply the creation of a permanent establishment in Peru.

VAT withholding or collection

• In the case of digital services that do not involve intermediation in the supply and demand of an underlying transaction, the nonresident entity receives an amount equal to 18% of the total sales or remuneration value. This amount is collected at the time of payment.
• If there is intermediation, the nonresident entity providing the intermediation service acts as: (i) a collection agent of the tax payable by the user or purchaser and (ii) a withholding agent for the tax payable by the provider or seller on the fee for the underlying transaction.
• Nonresident entities must file the VAT return and the payment of the tax withheld. This VAT return and payment may be made in local currency or in USD. The Peruvian Tax Administration (SUNAT) may also require taxpayers to file an annual informative return.

Entities facilitating payment

• When the SUNAT verifies that a nonresident entity (i) is not registered in the RUC, (ii) did not file the return or pay the total tax withheld or collected for two consecutive months, (iii) did not file the annual informative return, the tax will be withheld or collected by the entities facilitating payment. These entities include, among others, financial entities and electronic money issuers when the payment is made through credit cards, debit cards, electronic transfer, and the companies operating public telecommunication services that receive payment for digital services.

Entry into force of the LD

The LD will come into force on the same date as its Regulations, which is 1 October 2024. The LD stipulates that the Regulations must be issued within 30 calendar days from 4 August, date on which the LD was published.

Spanish version

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We hope that this information will be useful to you and your company. Please do not hesitate to contact us if you require any advice in this regard.

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