Peru has introduced significant updates to its Value Added Tax (VAT) system through Legislative Decree No. 1623. Although enforcement began in late 2024, compliance expectations extend into 2025 and beyond. The reform expands VAT to cover digital services and intangible goods provided by non-resident entities, aligning Peru with global trends in digital taxation.
For companies offering cloud services, streaming, SaaS platforms, or online marketplaces, these changes create new compliance requirements that must be understood and addressed early.
What the New Decree Covers
Under the new decree, digital services consumed in Peru are now subject to VAT—even when the provider is based abroad.
Key provisions include:
- Scope: Applies to automated digital services such as streaming, cloud storage, online advertising, and digital marketplaces.
- Registration: Non-resident providers must register with SUNAT (Peru’s tax authority) and obtain a local tax ID (RUC).
- Collection and Reporting: Providers act as VAT perception agents, responsible for collecting and remitting VAT, with monthly returns due within ten business days of the following month.
- Non-Compliance: Unregistered or non-reporting entities risk being listed publicly as non-compliant providers.
Why These Changes Matter
These updates go beyond administrative changes—they demand system-level compliance. Businesses will need technology that can:
- Identify when a customer is in Peru (via IP, billing address, or payment method)
- Apply the correct VAT rate automatically
- Generate and submit reports accurately to SUNAT
As tax authorities worldwide adopt similar rules, integrating compliance into billing and reporting systems is becoming essential for sustainable operations.
The Role of Technology in VAT Compliance
Adapting to Peru’s VAT requirements depends on how well companies can align their systems with regulatory demands. For example:
- Billing and ERP Systems must be configured to identify taxable transactions and apply the correct VAT rates.
- Reporting Tools should automate data collection and submission, minimizing errors and delays.
- Data Integration across global platforms ensures consistent reporting and traceability for audits.
Automation and system integration are not just efficiency upgrades—they are compliance necessities under frameworks like Peru’s.
How Cresco Supports Businesses Navigating Peru’s VAT Rules
Cresco’s multidisciplinary approach—combining Advisory, Corporate, BPO, and Technology Services—positions the firm to assist clients at every stage of compliance:
- Advisory: Interpreting Legislative Decree 1623 and SUNAT Resolution 293-2024, assessing VAT exposure, and defining compliance strategies.
- Corporate Services: Guiding clients through SUNAT registration and ensuring that local structures meet regulatory standards.
- BPO Services: Managing VAT filings, recordkeeping, and ongoing reporting requirements on behalf of clients.
- Technology Services: Implementing or upgrading systems for automated VAT calculation, integration with SUNAT reporting tools, and ensuring digital compliance continuity.
By connecting regulatory knowledge with technological capability, Cresco helps companies stay compliant and operational in Peru’s evolving digital economy.
For more information or tailored support, fill out the form below or contact info@cresco-global.com.
