Peru Introduces VAT on Digital Services: Implications for Foreign Providers and Tax Compliance

• Peru has introduced VAT liability for foreign providers of digital services to residents
• Legislation aims to ensure compliance and prevent tax evasion by foreign digital providers
• Effective date for VAT liability is October 1, 2024
• Amendments to General Sales Tax Law and Consumption Tax Law define obligations for non-resident providers
• Different types of taxable persons responsible for tax collection and reporting
• Complex system for determining tax responsibility based on transaction specifics
• Foreign providers, digital platforms, and payment services providers may be responsible for tax collection and remittance

Source: 1stopvat.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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