Understanding Peru Nexus Rules
Updated 3 months ago
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Nexus determines whether your business has a tax obligation in Peru. Kintsugi monitors three types of nexus for Peru: physical nexus, economic nexus, and collected tax nexus.
Physical Nexus
Physical nexus is triggered when your business has a tangible presence in Peru. The table below outlines the most common scenarios:
Presence Type | Triggers Nexus? | Notes |
|---|---|---|
Company incorporated in Peru | Yes | Immediate registration required |
Branch office (Sucursal) established in Peru | Yes | Immediate registration required |
Employees in Peru with contract authority | Yes | Upon habitual activity |
Remote employees with no contract authority | No | Internal tasks only; generally no nexus |
Warehouse used solely for storage or delivery | No | Explicitly excluded under Peruvian law |
Retail store or physical shop | Yes | Immediate registration required |
Manufacturing or production facility | Yes | Immediate registration required |
Server or technical equipment owned in Peru | Yes | If it constitutes a fixed place of business |
Trade show with sales | No | Not a permanent establishment; import duties may apply separately |
Trade show without sales (display only) | No | Exempt activity |
Construction or installation project | No (until 183 days) | Nexus applies only if the project exceeds 183 days in a 12-month period |
Representative office (preparatory activities only) | No | Exempt activity |
Economic Nexus
Peru's economic nexus rules for non-resident digital service providers took effect on December 1, 2024, under Legislative Decree No. 1623.
Resident businesses and non-residents with physical presence in Peru were already subject to VAT before this date.
The new rules specifically address non-resident businesses without any physical presence in Peru.
Business Type | Threshold | When Registration Begins |
|---|---|---|
Resident (with physical presence) | Zero | Immediately upon starting economic activity |
Non-resident (without physical presence) | Zero | From the first B2C taxable supply to a Peruvian consumer |
Key Points
There is no minimum sales threshold. Registration is mandatory from the very first qualifying sale.
For resident businesses, zero-rated exports (such as services sold abroad) are still counted as taxable sales for the purposes of determining economic activity.
For non-resident businesses, B2B sales are excluded from this calculation as long as all sales remain B2B. Once B2C sales begin, registration is required.
Collected Tax Nexus
This works the same way as in the United States. If your business collected VAT in Peru without meeting the physical or economic nexus thresholds, that collection itself establishes nexus.
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