VAT on digital services in Peru: Implementation postponed to 1 December 2024

Providers and sellers of digital services who are not based in Peru will not have to register and pay 18% VAT to the Peruvian tax authorities until 1 December 2024 – a delay of two months. The Ecovis consultants know the details.

What are the key regulatory updates?

The main aspects of the regulations include:

• Extension for operating as withholding or collection agents: Non-resident providers currently providing services, or those beginning operations by 30 November 2024, will start collecting or withholding VAT from 1 December 2024 (instead of the originally scheduled date of 1 October 2024).
• Accounting records, ledgers, and payment receipts: Non-resident digital service providers acting as VAT withholding or collection agents will not be required to maintain accounting records, ledgers, or other statutory books, nor will they be obliged to issue payment receipts.
• Option to declare and pay in local currency or US dollars: As an exception, this option can be exercised for the first time in the declaration for December 2024.

We will help you to correctly declare VAT with the Peruvian tax authorities.

Octavio Salazar Mesias, Partner, ECOVIS Peru, Lima, Peru

For further information please contact:

Octavio Salazar Mesias, Partner, ECOVIS Peru, Lima, Peru
Email: octavio.salazar@ecovis.com.pe