Update: Foreign providers selling digital services B2C must withhold general sales tax and register for VAT in Peru

30 September 2024

From 1 October 2024, the Peruvian tax authority will introduce VAT at 18% on the sale of digital services by non-resident providers to local consumers.

Peru is introducing the new tax to remove the unfair advantage that non-resident companies have over resident suppliers who must charge VAT on their sales.

Non-resident providers will have to VAT register from the first sale they make as there is no VAT registration threshold and if they fail to register, payment facilitators such as banks or credit card companies will become responsible for withholding the VAT on payments received from the consumers.

This will apply to many services including software, access to social networks, streaming or downloading of media, digital newspapers and magazines, advertising, online auctions, access to websites, and interactive training.