Peru cuts VAT to 17%
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% Municipal Sales Tax is levied on most taxable supplies.
The latest target, 7.2% tax revenues as a share of GDP, will be assessed on 1 May 2017 before the VAT cut is implemented.
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