- Peru passed Law No. 32387, restructuring VAT components effective 1 January 2026.
- Total VAT remains at 18%, but IGV drops from 16% to 14% and IPM rises from 2% to 4%.
- The change aims to boost fiscal decentralisation and increase local government funding.
- It supports local infrastructure, balanced regional development, and greater municipal autonomy.
- Businesses must update VAT breakdowns on invoices and systems to reflect the new structure from 2026.
Source: fintua.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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