Peru

Peru abandons VAT cut

July 18th, 2017

Peru abandoned plans to cut its VAT rate from 18% to 17% on 1 July 2017. The country’s fiscal deficit has widened recently, leading to an abandonment of the 3-year reduction plan to 15%.


Peru

Peru cuts VAT to 17%

January 12th, 2017

Peru has announced plans to reduce its standard VAT rate by 1% to 17% from 1 July 2017. The measure has already been delayed several times in recent years as the country has failed to achieve matching tax collection targets.  The government is targeting a VAT rate of 15% eventually.  In addition to VAT, a 2% …


Peru

Peru introduces electronic VAT invoices

October 27th, 2014

Peru this month became the latest South American country to introduce electronic VAT invoices. Ecuador and Mexico also recently introduced such measures. The Tax Administration is aiming to reduce the amount of VAT fraud in the country with the long-term aim of forcing companies to submit electronically all transactions for statistical analysis to the tax …


Peru

Peru to cut VAT rate to 14% by 2016

October 13th, 2014

The Peruvian standard VAT rate is to be cut twice over the next two years. The current headline VAT ( Impuesto General a las Ventas IGV) rate is 15%.  A new draft law, introduced this week, proposes cutting it to 15% on 1 January 2015.  If the budget consolidation continues to plan next year, it will …


Peru

Peru extends VAT withdrawal regime on certain construction activities

June 21st, 2014

The Peruvian tax office has confirmed that the VAT Impuesto General a las Ventas (IGV) Withdrawal regime will apply to the following construction activities: Install of electricity lines Urban constructions work Public building work The Peruvian VAT Withdrawal system is used to control VAT fraud and defaults. It enable the government to take collected VAT …


Peru

Peru extends a range of VAT exemptions

February 9th, 2013

At the end of December 2012, the Peruvian tax authorities confirmed the extension of a range of exemptions from VAT. The goods and services include: Public transport Interest payable on publicaly offered bonds and securities Transport of goods outside of Peru Basic foods Low-value construction work