Streaming apps will pay taxes: user prices “would not vary much”, according to the MEF

The Minister of Economy and Finance, José Arista, assured that if Congress grants legislative powers to the Executive Branch to apply the VAT to streaming platforms, S/600 million would be collected in the first year of implementation.

The goal of taxing these apps such as Netflix, Disney+, Max and Prime, among others, is to reach S/1,000 million annually.

“Our regulatory framework has to be updated. The regulation does not specify how it can be charged. There is a tax, it says that 18% VAT must be charged, but it does not say how. “What we are asking for in this case is that they authorize us to collect through the banking system,” noted before the Constitution and Regulations Commission.

Said tax would not affect the final prices paid by consumers, in the words of the minister, since in other countries “the price has not changed much.” It will depend on the competition that exists in the market. “In general, prices have hardly moved,” he highlighted.

“The VAT should reach everyone”

In accordance with PL 7752/2023-PE where the requests to the Legislature are nested, The VAT should cover all consumption that occurs in the country, whether services or goods through marketplaces; Otherwise, it would imply unequal competition with the entities domiciled here.

Another of the modifications they propose is to reduce the threshold of US$200 for the importation of fast delivery shipments since their entry via customs regimes displaces VAT taxation and affects competition on equal terms. In Ecuador and Chile, the amounts are US$10 and US$30, respectively.

Finally, Arista noted that changes will be applied to the Selective Consumption Tax (ISC) to tax products, such as vapes, that have nicotine, but it will not translate into an increase in the rate.