Legislative Decree No. 1714 revises advance VAT (IGV) withholding on imports, applying a 10% rate in exceptional cases based on importer tax and customs compliance.
Peru issued Legislative Decree No. 1714 on 4 February 2026, revising the application of advance VAT (IGV) withholding on imported goods. The changes clarify when a 10% withholding rate applies, up from the usual 3.5% or 5%, based on the risk profile and tax/customs compliance of the importer.
The decree, enacted under the authority delegated by Law No. 32527, amends Law No. 29173, Regime of Perceptions of the General Sales Tax.
It specifies exceptional cases triggering the 10% rate, including instances where importers fail to submit VAT returns, advance payments or income tax settlements, or New RUS instalments for two consecutive or alternating periods within the past year. It also applies to importers designated as non-operational entities by SUNAT.
Congress temporarily authorised the Executive Branch to legislate on economic growth and public security matters. Using this authority, the government updated the VAT perception rules to better target higher-risk importers and strengthen tax compliance.
What changes in practice?
The decree:
- Updates several articles of Law No. 29173 to refine definitions, exclusions, procedures, and thresholds linked to VAT perceptions on imports.
- Clarifies that, for enforcement purposes, the “first import” is determined by the cargo manifest, not by individual shipments.
- Specifies new situations where the 10% VAT perception rate applies, even if it would not normally do so.
New high-risk cases triggering the 10% rate
Two additional situations now explicitly qualify an importer as high risk:
- Repeated non-compliance:
The importer has failed to file VAT returns, income tax advance/settlement payments, or simplified tax regime instalments for two consecutive or non-consecutive periods within the 12 months before the import. - Non-operational status:
The importer has been officially classified as non-operational and appears on the public list maintained by SUNAT.
When does it take effect?
The decree enters into force on the first business day of the month following its publication in the official gazette.
