Initial VAT rate to 15%; rise to 17% by 2028
The Peru Parliament checks a draft law to reduce the existing standard VAT rate of 16% (there is a further increase in the municipal interest rate of 2%), whereby it has a possible increase. The changes that have agreed to promote investments for individuals and companies in all productive sectors to promote the investment and increase the economy would be:
- 2025: 16% VAT (2% additional municipal fee)
- 2026: 15%
- 2027: 16%
- 2028: 17%
These changes would only apply to resident companies. Non-insixing (or example) that offer consumers the digital service could not enjoy the 15% reduced rate.
Peru achieved robust growth last year and expects 4% to be achieved this year the GDP increase – to the tops in South America. However, this follows a deep recession that led social unrest to hit the most important mining sector in the country in the middle of the growing political instability.
Peru 18% VAT rate
The standard VAT rate of Peru is 18%, which makes a VAT of 16% and an urban transport tax of 2% (Impuesto de Promoción Municipal). This rate is largely true for the sale of goods, services, construction contracts and imports. Exports are rated with zero so that the exporters can restore input countries in relatives.
In recent years, Peru has implemented several reforms in connection with VAT:
-
Tourism and hospitality sector: Support economic recovery, a reduced VAT of 8% was presented for micro and small companies in the hospitality sector, including hotels, restaurants and tourist accommodation. This rate is effective by December 31, 2026, according to which it will increase to 12% in 2027.
-
Digital services: From August 2024, non -resident providers of digital services for people in Peru must register for VAT and transfer the tax of 18%. This measure aims to ensure the tax compliance with the growing digital economy.
-
Hold back mechanisms: Peru uses systems such as The Spot (Sistema de Pago de Oblictaciones Tributarias) to facilitate VAT collection. As part of Spot, certain transactions are subject to the source interest of 4%, 10%or 12%, which are initiated in special accounts that are to be used to pay tax obligations.