In a recent update, Peruvian Decree-Law No. 1623 established new filing deadlines and obligations for non-resident taxpayers with respect to the General Value Added Tax (GV). These rules, which are set to come into force on October 1, 2024, will affect non-resident companies that offer digital services or intangible goods to Peruvian consumers.

Important deadlines and requirements:

1. Monthly submission and payment: Non-resident companies acting as withholding or collection agents must file their tax returns and remit the collected IGV within the first ten working days of the month following the month in which the tax was collected.
2. Annual Information Statement: In addition to the monthly obligations, non-resident companies may be required to file an annual information declaration if required by the Peruvian tax authority SUNAT. Exact deadlines for this declaration will be established in a resolution of SUNAT.
3. Requirements for initial registration: Non-established companies that start or continue operations by 30 September 2024 must start withholding or collecting the IHR from 1 October 2024. The first registration for these companies is due in early November 2024.

Important instructions:

• Taxpayer definition: Individuals who use digital services provided by companies not established in Peru are considered IHI taxpayers, even if they do not carry out business activities there.
• Collection mechanism: Non-domiciled companies offering digital or intangible goods must register in Peru’s Unified Taxpayer Registry, but are not required to establish a physical presence in the country. They act as withholding agents for the IHR.
• Criteria for consumption: Digital services and intangible goods are considered consumed in Peru if the user has his or her habitual residence in the country, determined by factors such as IP address, SIM card country code, payment methods or registered address.
• Duties and payment: Non-resident companies must verify the residency of users and ensure proper tax withholding. Taxes collected must be declared and paid monthly. Payments can be made either in local currency or in US dollars.
• Role of the moderators: If non-EU-based companies fail to comply with their registration or payment requirements, the companies responsible for processing payments (e.g. financial institutions) are obliged to withhold or collect the tax on their behalf.
• Use of the tax credit: Taxes withheld by individuals engaged in commercial activities can be claimed as a tax credit under certain conditions.

Source: elperuano.pe

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