Implementation of VAT on digital platforms
Since October 2024, Peru has applied an 18% sales tax (IGV) to digital services provided by non-domiciled companies. This measure affects platforms such as Netflix, Spotify, Amazon Prime Video and others, which now include VAT in their charges to Peruvian users. The National Superintendency of Customs and Tax Administration (SUNAT) estimates that this initiative will generate annual revenues of over US$200 million.
Objectives of the measure
The application of VAT to digital services seeks to balance competition between local and foreign providers, ensuring that everyone contributes fairly to the Peruvian treasury. In addition, this action is in line with international recommendations and strengthens Peru’s position in its process of accession to the Organization for Economic Cooperation and Development (OECD).
Responsibilities of digital platforms
Non-domiciled companies offering digital services in the country are obliged to register in the Single Taxpayer Registry (RUC) and act as VAT collection agents. This means that they must collect the tax when they charge for their services and then declare it and pay it to SUNAT. To facilitate this process, SUNAT has implemented Virtual Form No. 623 for the declaration and payment of IGV by these platforms.
Impact on consumers
Peruvian users of digital services have noticed an increase in the prices of their subscriptions and online purchases, reflecting the inclusion of IGV. It is essential that consumers are informed about this adjustment in order to understand the changes in their bills and avoid surprises.
Call to action
If you are a user of international digital platforms, check your statements and familiarize yourself with these tax changes. Stay informed and make sure you understand how this tax affects your spending on digital services.
Source: El Peruano