Peru moves forward on collecting taxes on digital platforms from 2020

Peru is looking for digital platforms such as Netflix and other global companies to pay taxes for the sales they make in the country, starting next year. Claudia Suarez, Head of the  Peruvian Customs and Tax Administration National Superintendence (SUNAT), told Reuters that the initiative could have the country’s Government approval, through an emergency decree.

‘We are working with the Economy and Finance Ministry (MEF), which already has a proposal to tax digital services’, said Suarez. Also, when asked about the possibility of including Amazon in the General Sales Tax payment, Suarez said it is not defined yet, but did mention Netflix, Uber, Spotify and Airbnb and Cabify.

Suarez also informed that this tax collection will be made ‘via credit card retention’ of users when paying for the digital platform. SUNAT’s Head estimated that, in 2020, taxation on digital platforms ‘will generate S / 150 million (USD 44 million) in revenues’.