Peru: Draft regulation implementing VAT compliance obligations for nonresident digital services providers

The Peruvian tax administration (SUNAT) published a draft regulation implementing new value added tax (VAT) compliance obligations for nonresident digital services providers, which is proposed to be effective January 1, 2025. 

Legislative Decree Nº 1623/2024 was published on August 4, 2024, requiring nonresidents selling digital services and importing to private individuals in Peru to register for, collect, and remit VAT at a rate of 18%. These rules are effective from December 1, 2024, as set out by Legislative Decree Nº 1644/2024. Read TaxNewsFlash

The draft regulation would create a new VAT return for the purpose of the new rules, Virtual Form N° 0623 - IGV - Digital Economy. This new return would have to be filed in Peruvian sol (PEN) or in U.S. dollars (USD) within 10 business days of the month following the month in which the tax obligation arises by the nonresident digital services providers.

According to the draft regulation, the return would include separate boxes for the total VAT amount collected by nonresidents acting as a collecting agent (i.e., agente de percepción) or as withholding agent (i.e., agente de retención). A nonresident acts as collecting agent for direct sales of in-scope transactions while digital intermediation services are subject to VAT withholding. The draft regulation further clarifies that no returns would need to be filed if no taxable sales have been made in a specific month. Moreover, in case of errors, nonresident taxpayers would be allowed to file substitute or rectifying returns.

The SUNAT will set up a dedicated online platform allowing nonresident taxpayers to prepare and file the return, make payments in PEN, obtain a Peruvian tax administration payment number (NPST) to make the payment in U.S. dollars, and review their compliance status.

Taxpayers would be able to opt to make payments in PEN or USD. Taxpayers would make an election for the tax return in the January period of each year or in the first tax return filed during the year. The currency chosen would be maintained for the declaration and payment of all the periods of the year. The payment currency would result in different payment methods:

• For payments in PEN, taxpayers would be able to pay either through debit of an account or through credit or debit card
• For payments in USD, nonresident taxpayers would first need to obtain the NPST to allow them to make a SWIFT transfer to Peru’s National Bank Account

Read a December 2024 report (Spanish) prepared by the KPMG member firm in Peru

Carlos Rodriguez | carlosjrodriguez@kpmg.com

Roberto Casanova-Regis | rcasanovaregis@kpmg.com

Philippe Stephanny | philippestephanny@kpmg.com

Doug Fagan | drfagan@kpmg.com