Guide to Peru Taxability and Rates
Updated 3 months ago
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Peru's standard VAT rate is 18%, applied to most taxable goods and services, including SaaS. There are no tax holidays in Peru, and no Digital Services Tax (DST) applies.
Tax Rates by Transaction Type:
Business Type | Transaction Type | VAT Treatment |
|---|---|---|
Resident business | B2B domestic | 18% charged by seller |
Resident business | B2C domestic | 18% charged by seller |
Resident business | B2B cross-border (export) | 0% (zero-rated) |
Resident business | B2C cross-border (export) | 0% (zero-rated) |
Non-resident seller | B2B (buyer provides VAT ID) | Reverse charge applies; buyer self-assesses |
Non-resident seller | B2C (buyer is an individual) | 18% charged by non-resident seller |
For Non-Resident Businesses Specifically:
Category | Rate |
|---|---|
B2B SaaS | 0% (reverse charge applies) |
B2C SaaS | 18% |
Key Rules to Keep in Mind:
Resident businesses always charge 18% on both B2B and B2C SaaS sales.
Non-resident businesses only charge VAT on B2C transactions. B2B sales are handled via reverse charge, where the Peruvian business client accounts for and pays the VAT directly.
VAT on exports (zero-rated) may still require the seller to apply the destination country's VAT rules.
Sales to non-profit organizations are taxable if the supply is not otherwise exempt.
Product Classification Codes:
Peru's tax authority uses a product classification system called the "Código de Producto SUNAT," based on the United Nations Standard Products and Services Code (UNSPSC). Including this code on a Peruvian VAT invoice is optional. Its omission does not invalidate the invoice.
What is Reverse Charge?
Reverse charge is a VAT mechanism where the registered buyer, not the seller, is responsible for calculating and remitting the tax. The seller issues an invoice without charging VAT (or at 0%), and the buyer self-assesses the tax in their own return. This is the standard treatment for cross-border B2B digital services sold into Peru by non-resident providers.
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