Peru VAT Compliance: An Overview for Businesses
You may think complying with Peru’s VAT obligation is simple, but there is plenty to consider. Peru has several mandates at play for businesses, such as e-invoicing, and both time and effort are required to stay compliant.
Consider the need to stay on top of mandates as they evolve, and you will realise that your organisation needs to pay constant attention to what you do in the present and the future.
This page is the ideal place to stay on top of your tax obligations in the country.
| Periodic VAT return | Monthly Between 7th-16th day of the month following the end of the tax period |
| VAT rates | 18% 10% 0% |
VAT rules in Peru
There are multiple tax-related mandates businesses operating in Peru need to be aware of, including:
Peru e-invoicing
Peru is deep into its electronic invoicing journey, with an e-invoicing mandate in place for all taxpayers. The activity is regulated by the Electronic Issuance System and includes more electronic documents than just electronic invoices.
Find out more about e-invoicing in Peru.
Peru OSE
There are multiple electronic issuance systems in Peru that help generate electronic payment receipts. These systems can be public, commercial or private.
The main SEE systems are:
- SOL issuance system: Mainly for small taxpayers and independent professionals to produce electronic receipts
- Issuance system from the taxpayer’s systems: Made according to the taxpayer’s measures and needs to issue electronic receipts.
- SUNAT billing issuance system: For issuing electronic receipts
- Electronic services operator issuance system: The process of validating the CPEs generated by the taxpayer’s issuance systems requires entities authorised by SUNAT to electronically verify CPEs to be considered issued
Sovos is an official Operator of Electronic Services in Peru, as well as an Electronic Services Provider (PSE). Find out more about our global e-invoicing compliance solution.
Requirements to register for VAT in Peru
Awareness is key when considering your VAT obligations in Peru. The country has no VAT threshold, meaning businesses must register having provided their first taxable supply.
It also requires non-resident organisations to register for VAT at the point they perform their first taxable activity.
Taxpayers in Peru must register for a ‘Registro Unico de Contribuyente’, a unique identification that covers VAT but also other taxes. The required documents include:
- Form 2119
- Evidence of incorporation
- The company’s Public Registry documentation
Peru will enforce a new VAT rule from 1 December 2024. Non-resident providers of digital services will be required to register for VAT at 18% when providing digital services to consumers in Peru.
Invoicing requirements in Peru
Peru introduced e-invoicing in 2010, though it became compulsory in the country years later. Taxpayers must issue and receive electronic invoices, and meet certain requirements along the way:
- Recipients must generate an acknowledge of receipt for received e-invoices
- Electronic invoices must be issued for both B2B and B2G transactions
The invoices themselves have stringent rules – such as needing to be in UBL 2.1 format and archived for at least five years – and require information such as:
- Invoice data and reference number
- Supplier name, address, contact details, tax ID
- Description of goods and/or services (quantity, price, unit of measure)
- Invoice amounts (net amount, tax amount, gross amount)
Penalties for non-compliance with VAT in Peru
Failing to meet VAT obligations in Peru may lead to penalties.
For example, failing to declare taxable sales can result in a fine that amounts to 50% of the VAT amount that is due – plus monthly interest of 1.2%. There are other reasons in which a taxpayer may be penalised, so compliance is vital.
FAQ
What is the VAT rate in Peru?
Peru’s standard VAT rate is 18%, comprising 16% VAT and 2% of a municipal tax known as ‘Impuesto de Promoción Municipal’.
Can I withhold VAT in Peru?
There are certain supplies in Peru that are eligible for withholding VAT, of 4%, 10% or 12%. Taxpayers are required to split the withheld VAT and remit it to a special account with the nation’s bank.
Can non-residents recover VAT in Peru?
Yes, non-residents who have purchased and consumed goods or services subject to authorised VAT in Peru can file requests to recover VAT. It will be refunded at the time of the non-residents’ departure.
Do I need a fiscal representative in Peru?
Businesses looking to register for VAT in Peru must submit specific documents through a local fiscal representative that is registered with the country’s tax authorities.
What is the VAT threshold in Peru?
There is no threshold for VAT in Peru. Businesses must register to pay VAT upon providing their first taxable supply.
What are the submission and payment deadlines in Peru for VAT?
VAT returns should be filed monthly, between the 7th and 16th working day of the month following the applicable period.
What is a VAT number in Peru?
Registered businesses in Peru must obtain a unique tax identification number, known as ‘Registro Unico de Contribuyente’. This number is necessary for VAT but also applies to other taxes.
What are the time of supply rules in Peru?
Peru dictates that VAT is due at the time of the goods or services having been supplied.
Solutions for VAT compliance in Peru
Compliance can be tough when considering there are multiple mandates that may apply, and that rules and regulations evolve over time. Ensuring you meet standards and are current on the state of play can feel like a full-time job.
This is where Sovos shines. We serve as the compliance partner for many organisations, staying on top of the tall task of compliance so they can focus on what truly matters: growing their business. Our one-of-a-kind solutions are matched by our expert team’s local and global tax knowledge, providing true confidence for a regulated world.