The government of Peru has enacted Legislative Decree No. 1623, dated 2 August, 2024, to implement new rules for collecting Value Added Tax (IGV) on digital services provided by non-domiciled suppliers to Peruvian residents. This regulation targets business-to-consumer (B2C) transactions, covering digital services such as streaming content, online storage, social media access, digital publications, remote conferencing, and service intermediation.
The decree also extends IGV to intangible assets purchased online and downloaded by consumers.
Non-domiciled suppliers are required to register with Peru’s single taxpayer registry (RUC), declare, and pay the tax within the first 10 business days of the month following the supply. If suppliers fail to comply, payment facilitators will be responsible for collecting the tax.
The new rules will take effect upon the issuance of a supreme decree, expected within 30 days from 4 August, 2024. Non-domiciled suppliers must begin withholding IGV from 1 October 2024, for taxable supplies made by 30 September 2024.
