Tax rate by region Peru

Select region

Sales Tax In Peru: A Complete Overview

In Peru, SaaS companies are subject to the General Sales Tax (Impuesto General a las Ventas, IGV) of 18%. This tax applies to all digital services provided within Peru, including software downloads, online storage, and streaming services. It was implemented in 1991 as part of a larger effort to streamline the tax system and increase revenue. Established in 1986, the IGV is a value-added tax (VAT), meaning it is levied at each stage of production and distribution. The current rate of IGV was set in 1991, and it has remained unchanged ever since.

Peru

Peru implemented a VAT system in 1991 to enhance revenue collection and support economic growth.

Official government link: Superintendencia Nacional de Aduanas y de Administración Tributaria

18.00%

E-products and services VAT/Sales tax rate

Reduced tax rate product categories

Some educational material might benefit of reduced tax in some cases

Exempted product categories

Non-resident companies selling directly to peruvian consumers (B2C) don’t have to collect VAT

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Once a sales was made

Online registration possible

Yes

Local representative needed

Registration procedure

To get an RUC number, you need to apply through the Virtual Party Table (MPV) online or in person. You can submit the application yourself, through a legal representative, or an authorized third party. Certain requirements must be met to complete the application.

List of digital and electronic services liable for tax

Streaming or downloading of movies, music, e-books, and other digital content
Online gaming and in-app purchases
Software downloads and cloud-based services (SaaS, PaaS, IaaS)
Online advertising and marketing services
Online marketplaces and platforms
Social media platforms and communication tools
Web hosting and domain registration services
Online educational services like e-learning and webinars
Online consultations and professional services
Digital subscriptions and memberships
Online ticketing and booking services

Penalties

If taxable sales aren’t declared in Panama, a fine of 50% of the VAT amount is incurred, with an additional monthly charge of 1.2% (calculated at 0.04% daily). Smaller businesses can potentially request a 3-month grace period.

Registration threshold

No threshold, non-resident companies must register for VAT

Filing interval

Monthly

Filing deadline

Between the 7th and 16th business days following the reporting month

E-invoicing requirements

Yes

Record keeping

The following documents must be kept for 10 years:

Invoices (including electronic invoices)
Credit notes and debit notes
Import and export documentation
Other relevant documents related to transactions
General ledger
Cash book
Bank statements
Journal entries related to VAT transactions
Copies of filed VAT returns
Proof of payment of VAT

Effortless Subscription Management and Billing

Essential IGV Compliance Requirements for Businesses in Peru

Businesses must comply with specific requirements for IGV compliance. They are required to register with the Peruvian tax authority (SUNAT) and obtain a tax identification number. Additionally, businesses must issue electronic invoices for all sales, file monthly tax returns, and make payments by the due date, which falls between the 7th and 16th business day of the following month. Record-keeping is crucial, as businesses are required to maintain relevant documents, including invoices, credit and debit notes, and financial statements for 10 years.

Best Practices and Strategies for Success

Managing IGV in Peru can be challenging for SaaS companies. Engaging with a tax professional can provide valuable support in navigating the complexities of tax compliance. Additionally, utilizing modern tools and processes can help in streamlining compliance tasks and reducing the risk of errors. E-invoicing, for instance, can simplify the invoicing and reporting process while ensuring data accuracy. By prioritizing compliance, businesses can operate confidently and avoid potential fines and penalties.

Ready to get started?

We’ve been where you are. Let’s share our 18 years of experience and make your global dreams a reality.

Talk to an Expert