When New York first passed its law defining what constitutes a “vendor” subject to collecting sales tax in the 1980’s, the idea of online shopping sounded like science fiction. In retrospect, NY may have effectively enacted the first “economic nexus” law when they drafted their definition of “vendor” to include a person who regularly or […]
Why a New OSE Mandate in Peru Could Leave Companies Searching for Partners
Peru is giving large companies just five months to comply with a requirement to partner with a certified Operator of Electronic Services (OSE) for clearing e-invoices, a mandate that will require some companies to seek service providers before the deadline.
As of March 1, 2019, all taxpayers considered a national or regional large company by the tax administration will need to validate invoices with an OSE—a third-party service provider—which will then make the invoices available to the other parties involved in the transaction. The OSE will act as the government’s agent for clearing invoices, validating the information in each invoice before relaying it to the SUNAT, Peru’s tax authority.
Peru OSEs act as e-invoice clearance agents for the government
OSEs will validate invoice information in real-time before sending it to the SUNAT with a maximum delay of one hour. In addition, Peru is requiring OSEs to provide a web portal for sellers, buyers, delivery companies and other invoice recipients. The portal will make available critical information about the documents OSEs have validated. Information available in the portal will include e-invoices, e-receipts, credit notes, debit notes, and the so-called “comprobantes de percepción.”
Although in Peru there are more than 100 Electronic Service Providers, locally known as PSEs or Proveedores de Servicios Electronicos, which provide e-invoice processing and reporting services, the Peruvian government has thus far approved fewer than 10 of those providers as OSEs. Further, companies that are not currently PSEs will have difficulty achieving OSE certification, as the certification process can take months. The upcoming holiday season will also delay certifications.
Will Peru start an OSE e-invoice clearance trend?
Effectively, that means that companies considered large under the current legislation have to partner with an OSE before March 1 or risk being out of compliance with the new mandate. Companies that currently partner with an OSE for e-invoice compliance should be in good position to be in compliance prior to the deadline. Those that do not, however, will need to find an OSE quickly.
Given the copycat nature of e-invoicing mandates in Latin America and around the world, Peru’s aggressive move could signal the start of a trend toward other countries adopting similar mandates. Finding a company with the breadth of functionality and experience to handle the OSE role would then be critical not just in Peru but on a global basis as well.
Sovos is one of only a few companies certified by the SUNAT to function as an OSE. Learn more about how Sovos has kept companies in compliance in Latin America for more than a decade.
With recent enforcement measures, the IRS has offered definitive proof that the Affordable Care Act (ACA) is still alive and that the agency plans to strictly enforce ACA reporting. Last spring, the agency issued Letter 226J to Applicable Large Employers (ALEs) that failed to cover 95 percent of employees. ALEs are companies with 50 or […]
UPDATE (Jan. 8): Reporting season is moving forward according to plan. The IRS has announced that it will process tax returns on schedule and without delays. While the agency will clarify its contingency plan in the coming days, organizations should proceed as planned with 1099 reporting and other seasonal filings. The IRS will recall a […]
The South Dakota v. Wayfair decision last June has created a lot of angst for indirect tax professionals and the businesses they work so hard to protect from the burdens of sales and use tax filing. Six months later as we begin the new year, that angst has not gotten any lighter. Any federal legislative […]
2018 was a volatile year in indirect tax compliance for tax, finance and IT professionals worldwide. With an increase in globalization and tax gaps surpassing tens of billions in some countries, it’s not surprising that one of the biggest challenges governments are addressing is revenue collection. Like enterprises, governments are creating new, technology-driven processes to […]