The Ministry of Economy has announced new regulations (Supreme Decree No. 157-2024-EF) for VAT collection on digital services provided by non-resident entities and the import of intangible goods. The decree was published in the Official Gazette on 24 August 2024.
The Supreme Decree introduces the initial set of regulations under Legislative Decree 1623, which stipulates that if a non-resident does not register in the VAT Registry or fails to pay the VAT, the responsibility for payment will fall upon Peruvian financial entities and electronic money entities regulated by the Peruvian Banking Authority, as well as the Peruvian National Bank.
If an individual is the final user of streaming services and is engaged in business activities, they can use the VAT withheld by the non-resident as input VAT. The non-resident’s invoice must detail the transaction amount, serving as the supporting document for the individual’s input VAT claim.
A new procedure allows non-residents to apply excess VAT payments against future liabilities or request a refund.
On 4 August 2024, the Executive passed Legislative Decree 1623, imposing an 18% VAT on individuals using digital services through online platforms and on the importation of intangible goods via the internet. Starting 1 October 2024, non-resident providers and sellers of digital services will be required to withhold this VAT.
