Extension of the VAT exemptions

The President may issue Legislative Decrees to enact certain tax measures, including regulating how silent partnerships are taxed and extending the value-added tax (VAT) exemption.

The VAT exemption was set to expire on December 31, 2021. Legislative Decree 1519 extends the VAT exemption for activities and services listed in Appendix I and II of the VAT law until December 31, 2022. The VAT exemption applies to the following activities and services, among others:

• Interest from the collection of credits transferred by banking entities to securitization companies, trusts or investment funds
• Public transportation services within Peru, except for public rail passenger transportation and air transportation
• Cargo transportation services from Peru to foreign countries and from foreign countries to Peru
• Live shows
• The sale or import of certain goods (fish, crustaceans, mollusks, fresh or refrigerated potatoes, beans, artichokes, among others)

The Legislative Decree also extended until December 31, 2024:

• The refund for VAT and taxes paid for donations from foreign entities
• The provisions for imports made by diplomatic missions
• The VAT exemption for the issuance of electronic money by regulated electronic money companies

Source

• EY
• EY – 2

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