Peru extends VAT withdrawal regime on certain construction activities

Sat 21st Jun 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 from a tax payer’s bank account to offset against other existing tax debts.