E-commerce taxation in Peru: how does the Government try to realize it?

E-commerce has developed rapidly in last decade as more people are using the Internet for buying and selling the goods online. Most Latin America countries, however, have not legislated specific rules for e-commerce taxation and instead apply their present tax systems to e-commerce transactions. In Peru, for example, there are no specific tax regulations for sales over the Internet. A general sales tax is levied for the goods sold over the internet.
Peru’s tax system is regulated by several statutes. The Tax Code is the main legislative body of law that defines tax principles, nature of taxes, the tax duty, and faculties of the Tax Administration, the Tax Court, tax proceedings, and penalizations to taxpayers.

Both the central government and local governments administer the tax system in Peru, but at two different levels. National taxes are administered by the National Superintendence of Tax Administration (“SUNAT”). SUNAT is in charge of administering and applying tax collection processes and controlling internal and external taxes. Local governments, like municipalities, administer local taxes assigned to them by national laws as well as municipal tariffs and fees for licenses, excise and duties.

In Peru, an individual’s domicile is important for tax purposes. In addition to citizens, a person who regularly resides in Peru with a resident visa will be considered as though he is domiciled in Peru provided he has resided in Peru for 2 continuous years.
How does Peru tax e-commerce transactions?
There are no specific rules or regulations regarding e-commerce taxation in Peru. The same laws apply to both offline and online transactions. A general sales tax in levied upon the sale, lease and/or import of new and used goods and services by manufacturers, wholesalers, importers and retailers. The standard rate of general sales tax is 19%. Thus, both virtual and traditional stores must include the 19% sales tax for the goods sold in Peru.

Merchandise purchased outside the country adds the 19% sales tax plus an additional 12% based on the cost and shipment of the product. However, tax is not applicable for products bought outside the country for less than US $100 and sent to Peru as gifts.

There is also a tax on companies registering digital signatures and certificates. The tax applies to the annual income of companies and agencies earn for registering digital signatures. The maximum amount of the tax is 0.08%.
How is the general sales tax calculated on e-commerce transactions?
The sales tax is applied to the value added in each stage of production and the exchange of goods and services. A tax credit is allowed for the tax paid in the previous stage. In calculating the amount due from sales, the payer deducts any sales tax paid on purchases. Also, an additional 2% municipal-promotion tax is levied simultaneously.

There are certain items on which general sales tax is not levied. For example, exports of goods and services are exempt from the general sales tax. Some of the exempt export services include consulting, technical assistance, temporary assignment of industrial property, data processing, financing, and insurance and reinsurance operations.

Transfer of used goods by individuals or enterprises not engaged in business activities and transfer of goods resulting from the reorganization or transfer of companies, building contracts executed abroad are also exempt from general sales tax.

Ira Piltz, Greenpoint Technologies