The recent Bill Project regarding the application of General Sales Tax (VAT/IGV) on digital services marks a significant shift in the Peruvian tax system, aiming to tax consumption managed through digital platforms.
Scope of the Proposal
The project seeks to establish a collection mechanism for services provided by non-domiciled companies, such as:
- Streaming Services: Platforms for movies, series, and music.
- Cloud Storage: Data hosting and management services.
- SaaS (Software as a Service): Digital tools and subscriptions for corporate or personal use.
- Online Intermediation: Marketplaces and service connection platforms.
Collection Mechanism
Unlike traditional operations, the bill proposes that the tax be collected through:
- Facilitators or Agents: Payment methods (banks, credit card issuers) acting as withholding agents.
- Direct Registration: Non-resident providers registering before the tax administration (SUNAT) to declare and pay the tax directly.
Impact on Consumers and Market
The primary objective is to level the playing field between local and foreign providers. However, it is expected that the cost of these services for the final consumer will increase by the applicable tax rate (currently 18% in Peru). This change aligns with international recommendations from the OECD to address the challenges of the digital economy.
