Peru Applies Sales Tax to Foreign Digital Platforms

Peru will apply a withholding tax on the sale of services provided by foreign digital platforms to domestic customers from October, according to a decree published Sunday in the official gazette.

The change will allow Peru to tax digital platforms on sales in the country in line with Organization for Economic Cooperation and Development rules the Finance Ministry said in the decree.

• Where the payment is not made directly to a foreign service provider, financial intermediaries will be responsible for collecting the withholding tax, it added.
• The rate of withholding tax will be set by accompanying regulation to be ...