Legal basis: Decreto Legislativo No. 1623
Effective: October 01, 2024
In order for the digital service to qualify as such for VAT purposes, it must have been made available through the internet or any other network, be essentially automatic and must not be viable in the absence of information technology, in addition it must be used by individuals who do not carry out business activities and have habitual residence in the country. For example: Netflix, Spotify, Disney, among others.
In order for intangible goods imported through the Internet to qualify as such for VAT purposes, they must be downloaded definitively by the purchaser through the Internet or any adaptation or application of the protocols, platforms or technology used by the Internet or any other network through which intangible goods are acquired and downloaded definitively, and they must also be used by individuals who do not carry out business activities and have their habitual residence in the country.
This tax will be paid by all digital service providers whose clients are individuals. Currently, only digital service providers with offices in the country (domiciled) paid this tax. With this new mechanism, providers that do not have offices in the country (non-domiciled) will also pay the tax.
The mechanism will be applied through a simplified registration of digital service providers before SUNAT, so that they declare and pay IGV.
The digital services to which the IGV will be applied are those for which a payment is made (subscription, purchase of services of the so-called enhanced versions) and which are provided to individuals by non-domiciled companies through the Internet.
digital services previously contracted that have already been paid will not pay IGV. The mechanism applies to digital services or the import of intangible goods through the internet that are supplied after the entry into force of the rule. It is not retroactive.
If you would like to learn more about this tax regulation, our team of experts is available to answer any questions you may have about the impact on your business.
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