IGV refund to tourists: Government formalizes Tax free for travelers arriving in Peru

The Peruvian Government published Supreme Decree No. 1548, which formalizes the return of the General Sales Tax (IGV) to tourists who arrive in our country, a global initiative for tax flexibility in the sector known as tax-free.

The document establishes that the return of the IGV for tourists is made through the Sunat or collaborating entities of the tax administration, or through both. The Tax free regulation, which must be presented in the next 60 days, that is, in compliance with its delivery in June as announced by Mincetur, will establish the requirements or conditions that the collaborating entities must comply with.

In the event that tourists request the return of the IGV paid for their purchases of goods through a collaborating entity, the latter can charge the tourist for the provision of this service. Said collaborating entity requests the Sunat the reimbursement of the amounts returned to the tourists.

“The refund is made with respect to the acquisition of goods that are made in establishments qualified by the Sunat as those whose acquisitions give the right to the refund of the IGV in favor of tourists,” the decree refers to.

IGV refund to tourists: apply for Tax free

But, if I have an establishment in the tourism sector and I want to apply for Tax free to attract more customers, what should I do? The decree states that interested businesses must register in the registry that for this purpose implements the Sunat.

Likewise, these businesses must not have been qualified by Sunat with any of the two lowest levels of compliance established in the corresponding regulations. That is, you also have to be a good taxpayer. This encourages formalization in the sector.

The establishments, whose acquisitions give the right to the aforementioned refund, are qualified by the Sunat as such without requiring that they be in the Good Taxpayers Regime or that they have any of the levels of compliance required by the corresponding regulations. This will be applied until the first assignment of the compliance profile takes effect under the criteria of Legislative Decree No. 1535, which regulates this type of tax qualifications.

“In the event that, after the aforementioned period of time, an establishment registered in the registry in charge of the Sunat is qualified with one of the two lowest levels of compliance of those established in the corresponding regulations, said establishment must be excluded from the mentioned register of full rights“he warns.