Peru Adjusts and Clarifies Advance VAT on Imports

Peru has published Legislative Decree No. 1714, which adjusts and clarifies the application of advance VAT (IGV) withholding on imports. One of the main changes concerns the cases where an increased rate of 10% applies (normally 3.5% or 5%), including where:

• The importer has failed to file or pay their VAT or Income Tax for two periods (consecutive or not) within the last 12 months (new);
• The importing company has been officially labeled as a "subject without operational capacity", which is…