Tax implications of trading with Peru

Question

Can somebody please advise on the tax implications of trading with Peru.

In particular withholding tax on UK based Sales invoices

Thanks,

Roque

Answer

Dear Roque

Thank you for your enquiry about customs and taxes in Peru

Imported goods are subject to import tariffs with currently ad valorem rates of 0%, 6%, and 11%.
Likewise, the Value Added Tax (VAT or IGV) of 18% is applied to imported goods.

Additionally, and depending on the type of goods, imports may be taxed with Selective Consumption or Luxury Tax (ISC), Antidumping Duties, Compensation Duties, or others.

The importation of goods is subject to the Prepaid VAT system, wherein the tax is determined by applying a percentage to the CIF customs value plus all taxes levied on the import and other surcharges, where applicable. The Applicable tax rate is 3.5%, 5% or 10%, depending on the situation of the importer and/or the goods to be cleared through customs. Like VAT, the amount paid may be used by the importer as a tax credit. However, there are certain cases in which the prepaid VAT does not need to be paid; for example, when the import is performed by VAT withholding agents, or in the case of certain goods excluded from this system.

Customs taxes and duties are summarised as follows (Tax – Rate – Taxable Base) :
Customs Tariffs —->> 0%, 6% and 11% —>> CIF Value
Value Added Tax (VAT) —->> 18% —->> CIF + Custom Duties

If you have a more specific enquiry we can suggest to talk with some customs agents in Peru.
Please don’t hesitate to get in touch should you need further information.

Sincerely yours,

Carlos Chau
UKTI Lima

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