The plenary session of Congress approved on Thursday the substitute text of the law that reduces the general sales tax to 8% (VAT) paid by micro and small businesses (mypes) in the category of restaurants, hotels, tourist accommodation, catering services and food concessionaires.
The autograph, which must still go through the Executive, is valid until December 31, 2024 and seeks to help in the recovery of mypes in this economic segment that has been one of the most affected by the COVID-19 pandemic. And that companies in the service sector fell by 26.6% between 2019 and 2020, with hotels and restaurants falling the most with -43.6% (See infographic).
The rule specifies that they will access the benefit mypes subject to IGV whose 70% of their income comes from the aforementioned activities. In addition, they must comply with the characteristics established in article 5 of Supreme Decree No. 013-2013-Produce, which qualifies as micro and small companies those that have annual sales of less than 150 UIT (S/690,000) and 1,700 UIT (7 million 820 thousand soles), respectively.
However, the legislative proposal clarifies that companies that, despite meeting the above conditions, have economic ties with other national or foreign companies or economic groups or form an economic group that together do not meet the requirements, are outside the law.
Daniel Hermoza, director of Mypes Unidas del Perú, mentions that if the autograph is approved by the Executive, it will help compensate for the losses that these businesses registered as a result of the increase in inflation and decreased consumption.
“What Congress is doing is avoiding the massive bankruptcy of restaurants and compensating for the loss of thousands of businessmen,” he told La República.
In that sense, Hermoza estimates that “at the national level there would be much more than 100,000 companies that could benefit from it.”
For his part, Carlos Canales, president of the National Chamber of Tourism, affirms that the measure will allow restaurants to open new premises and rehire staff during its validity.
“We calculate that with the demand that is going to be incorporated in the next two years, we should be at least already incorporating more than 500,000 workers into the sector,” he estimates.
Meanwhile, Ana María Choquehuanca, president of the Peruvian SME Association, emphasizes that the effectiveness of the standard will depend on the level of focus that is carried out in its implementation.
“You have to really determine who it goes to (…). You have to target the most repressed sectors”, she recommends.
However, he considers that the reactivation measures should not be focused on the taxation side. “Those who sell and have income are taxed and at this time SMEs have no income,” he said.
Against. In the previous days, the Ministry of Economy and Finance (FEM) stated that he was against this proposal because he considers that a reduced rate of VAT distorts and makes it difficult to apply.
Tax impact. The MEF calculates that the legislative initiative would have a fiscal cost of S/ 690 million. The estimate does not include the quantification of the increase in tax fraud associated with this project.