Top Challenges When Doing Business in Peru

Steve Sprague
October 21, 2015

This blog was last updated on October 21, 2015

Peru is one of the most recent countries in Latin America to announce government-mandated compliance initiatives, with e-invoicing requirements going into effect for the majority of companies doing business here in mid-2016. However, large multinationals can’t wait to implement the mandatory processes – libros reports are due in January, requiring companies to submit 10+ e-accounting reports for sales, purchases and inventories.

As you begin to prepare for these upcoming mandates, we’ve crafted the top challenges companies must consider:

Standard Report Requirements
Specific business codes must be used in the standardized e-invoices and reports, yet mapping these XML codes to your business processes and ERP is difficult, often creating extraction issues on both the invoicing and accounting ends. Not to mention, these specifications are known to change frequently, requiring regular SAP updates.

Real-time Communication 
Electronic documents must be submitted to the SUNAT (Peru’s tax authority) in real time – requiring seamless transmission between your ERP and government servers.

Contingency Processes 
When government systems go down, companies must have a plan to resend documents when systems are back up. Like Chile, Peru’s paper model contingency plan is ONLY for situations in which the government system is down; it is not applicable when the problem is on your end, so you must have a robust compliance partner that can minimize the risk of outages.

Archives
Past XML invoices must be stored for four years, and companies must make documents available to customers via a web portal for at least a year. Unlike Mexico and Chile, where companies can email past invoices, businesses operating in Peru must make past XML invoices available for download via a web page. The Peruvian government is not providing this service, so it is up to the individual company to provide the portal.

Cancellations
Businesses only have 72 hours after sending an e-invoice to submit a cancellation request. Once the 72-hour lock is in place, companies can only make adjustments via a credit note – requiring a change to most company’s processes for cancellations. Companies should look for a solution that offers a built-in cross-check solution on the 72-hour time stamp to prevent illegal cancellations.   

Inbound Receiving 
Once an invoice is received, companies technically have nine days to either accept or reject it – otherwise it is assumed to be approved by the SUNAT. Tax calculations must be made off of this approved invoice – not from any adjustments made via supplier-to-buyer transactions.

Additionally, buyers should create a process for collecting and archiving supplier XML – not just paper versions – as the XML is the only official version in case of an audit.

Shipping
Goods cannot ship without official documentation in the form of a Guia de Remision or Guia de Transportista (if using a third-party transit provider).

With these complexities in mind, companies need a compliance partner that can integrate with their existing ERP to fill compliance gaps and minimize audit risks. To learn more about how Sovos can support your operations in Peru, contact us or listen to the webinar replay, How to Prepare for Peru’s Impending Libros Requirements and Electronic Invoicing Mandates

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Steve Sprague

Como director comercial, Steve Sprague dirige la estrategia corporativa, las iniciativas de penetración de mercado y de field enablement para el negocio del impuesto sobre el valor añadido global (GVAT) de la empresa. El estilo de liderazgo de Steve se basa en su convicción de que, para que las organizaciones tengan éxito, deben comprometerse e invertir en los tres pilares estratégicos de la empresa: las personas, las prácticas y los productos.
Share this post

Hungary Supplemental Insurance Premium Tax
EMEA IPT
July 11, 2022
Extra Profit Tax: An Introduction to Supplemental IPT in Hungary

This blog was last updated on October 28, 2024 Update 7 October 2024 by Edit Buliczka Hungarian Tax Office Updates IPT Declaration Form for 2023 The procedure necessary to correct an underdeclared premium figure in Hungary can be complicated. The complexity of a correction for return form 2320 has become even more challenging. Following a […]

E-Invoicing Compliance EMEA VAT & Fiscal Reporting
November 1, 2024
New ViDA Proposal Set for ECOFIN Approval

This blog was last updated on November 1, 2024 The Council of the European Union has released a new proposal regarding the VAT in the Digital Age (ViDA) reform. The proposal aims to modernise and streamline VAT systems across the EU, notably e-invoicing and Continuous Transaction Controls (CTC). Members States will review it on 5 […]

what is peppol
E-Invoicing Compliance North America
October 29, 2024
What it is PEPPOL?

This blog was last updated on October 29, 2024 Peppol E-invoicing explained: What it is and how it works The global adoption of electronic invoicing is accelerating. Governments worldwide are pushing to adopt e-invoicing to digitally transform their national systems and, often, to close the VAT gap. While many countries have introduced their own e-invoicing […]

remote sellers sales tax
North America Sales & Use Tax
October 28, 2024
Will Congress Act to Simplify Remote Seller Sales Tax Collection

This blog was last updated on October 29, 2024 When the United States Supreme Court ruled in 2018, that South Dakota’s law imposing sales tax collection requirements on sellers without in-state physical presence was constitutional, it did not grant states free reign. States are still responsible for ensuring that their sales tax requirements are manageable, […]

dtc shipping laws for craft spirits
North America ShipCompliant
October 23, 2024
Why It’s Time to Reform DtC Shipping Laws for Craft Spirits

This blog was last updated on October 23, 2024 While wine lovers have enjoyed the convenience of direct-to-consumer (DtC) shipping for nearly two decades, the craft spirits market is still not afforded the same access. Outdated and restrictive spirits shipping laws have kept the spirits industry from fully leveraging the benefits of DtC shipping, leaving […]

reporting unclaimed property
North America Unclaimed Property
October 21, 2024
Three Key Reminders for Businesses Reporting Unclaimed Property

This blog was last updated on October 21, 2024 Unclaimed property compliance is one of those legal obligations that often flies under the radar for many businesses, especially smaller ones. However, failing to stay compliant can quickly turn minor oversights into major liabilities. In many cases, the penalties far exceed the value of the property […]