Bill No. 6611, presented in December last year, was approved by the Congressional Economic Commission. The legislative proposal seeks to reduce the General Sales Tax (IGV) of hairdressers and beauty centers – currently at 18% – to 8%, with a permanent validity in order to economically reactivate the sector and contribute to its formalization.
According to article 2 of the initiative of Eduardo Castillo (Fuerza Popular), this measure would apply to “natural or legal persons whose activities are taxed with VAT and whose main activity is: hairdressing and beauty centers that provide cutting services.” and hairstyle, treatments such as manicure and pedicure, makeup and makeover in general.” The latter includes treatments with facials and exfoliants.
Furthermore, it is stipulated that only people whose annual income from performing these services represents at least 60% could access this reduction. Likewise, those who are dedicated to the retail sale of beauty products would also have this benefit, as long as they do not exceed 40% of their annual income.
According to the National Superintendency of Customs and Tax Administration (Sunat), there are 5,300 companies in this sector that are subject to VAT, while the majority – approximately 39,000 – are registered in the RUS and, therefore, exempt from the tax.
Parliamentarian Noelia Herrera (Renovación Popular) points out that the MEF has observed the ruling because the VAT reduction will only help large cosmetics and beauty salon franchises of the middle and upper strata. While, Carlos Anderson (not grouped), considers it more appropriate to give “capital and training” instead of tax facilities to “a small group of companies.”
Source: Larepublica
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