Peru Delays 18% VAT on Digital Services to December 2024

Peru has delayed the implementation of its 18% VAT on cross-border digital services. This additional time gives businesses more opportunity to prepare for compliance with the new requirements.

Timeline

The VAT requirement, initially scheduled for October 1, 2024, will now take effect on December 1, 2024.

Impact

The Peruvian government has extended the deadline for implementing new VAT regulations on digital services. Legislative Decree 1644 delays the effective date of the 18% VAT imposed on the use of digital services by individuals and the importation of intangible goods through online platforms.

Starting on December 1, 2024, non-resident digital service providers and sellers will be required to collect, declare, and remit this VAT to the Peruvian Tax Authority.

This postponement provides businesses with more time to adjust their systems and ensure compliance with these new tax obligations.

Digital service providers should prioritize updating their billing systems and tax compliance processes to accommodate the 18% VAT requirement by the December deadline. Failure to comply could result in penalties, making it essential for non-resident businesses to stay informed about their obligations under Peruvian law.