In a move that seeks to level the fiscal playing field in the digital entertainment sector, the Peruvian government has decided to implement a General sales tax (IGV) of 18% to all streaming services operating in the country. This measure will directly affect popular platforms such as Netflix, Max and disney+, who until now did not pay this type of tax impositions in the national territory.
In this way, the tax system adapts to the rapid growth of digital services, especially during periods of confinement. With this new measure, it is expected to increase tax collection, and establish a more equitable regulatory framework for all players in the digital market.
General sales tax (IGV) is being prepared for streaming services
At a press conference, the Minister of Economy José Arista Arbildo announced that the tax collection for streaming services is being prepared, but that the rule is still in process.
“Our concern is obviously the fiscal balance and within this is the approval of a VAT collection mechanism for everything that involves streaming. The tax rate is already there, it is 18 percent“said the portfolio holder.
This provision will apply to both large international platforms and online film providers.
Taxes on streamig services: what is missing for the rule to become a reality?
Arista indicated that they will request legislative powers from the Congress of the Republic and that one of the measures will be the application of the general sales tax (IGV) to streaming services. However, he stressed that they seek to specify well what form of payment will be established.
“What happens is that, in this case, the supplier is external. When the VAT Law was made, it was always thought that the service provider or the supplier of the good was internal (…). But in this case we have an external supplier and The law was not adequate in those terms, it created the tax, but not the form of payment“, detailed the minister.
How much would be collected with this tax?
It is estimated that the application of this tax could generate a collection of approximately S/1.2 billion annually. This significant figure would help strengthen State revenues, which could be directed towards other sectors that need greater economic support.
What streaming services are available in Peru?
In Peru, several streaming services are available, including international and local platforms such as Netflix, Disney+, HBO Max, Amazon Prime Video, and Movistar Play. These platforms offer a wide range of content, from movies and series to documentaries and exclusive programs, and adapt to the entertainment preferences of Peruvian users.
Source: Larepublica
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