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September 13, 2024
2024-1696

Peru postpones effective date to 1 December 2024 for applying 18% VAT on digital services

  • As from 1 December 2024, nonresident providers of digital services and sellers will be obliged to declare and pay an 18% value-added tax (VAT) to the Peruvian Tax Authority.
  • This new effective date represents a two-month delay.
 

Beginning 1 December 2024, nonresident providers of digital services and sellers will be obliged to declare and pay an 18% VAT in Peru.

Background

On 4 August 2024, the Executive enacted Legislative Decree 1623, establishing an 18% VAT on individuals' use of digital services via online platforms and the import of intangibles via the internet. (For more information, see EY Global Tax Alert, Peru enacts rules for levying 18% VAT on use of digital services by individuals, dated 6 August 2024). The obligation was set to become effective 1 October 2024.

Legislative Decree 1644

Legislative Decree 1644 establishes that, as from 1 December 2024, nonresident providers of digital services and sellers will begin declaring and paying VAT to the Peruvian Tax Authority.

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Contact Information

For additional information concerning this Alert, please contact:

Ernst & Young Asesores Empresariales S.C.R.L, Lima

Ernst & Young LLP (United States), Latin American Business Center, New York

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor
 

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