Last May 3the Executive Branch requested the Congress a request for legislative powers for a period of 90 days. Among the issues on which it seeks to legislate is one related to taxation. In this section, we intend to apply a special rate to streaming services that operate in the country. This idea arises with the intention that these companies, even if they do not have physical operations in the country, pay taxes on General Sales Tax (IGV) and contribute to the treasury.
According to the projections of the National Superintendency of Customs and Tax Administration (Sunat)if the General Sales Tax (IGV) to on-demand services, such as Netflix, Amazon, Disney+, Star+, Max (HBO)among others, could be raised up to S/1,000 million.
Sunat Superintendent on tax on digital services: “it is applying a tax that already exists”
In an interview for RPP, Gerardo Lopeznew superintendent of the Sunatpointed out that the institution hopes to begin collecting said tax during the second half of this year, so its collection would take shape as the months went by. Likewise, López pointed out that the measure seeks charge an existing fee (VAT) to companies that do not have tax domicile in the country.
It should be noted that current regulations prevent the Sunat can meet its tax obligations, because the VAT It is designed to charge companies not domiciled in the country. The also called ‘Netflix rate’ has projected, as initial collection, close to S/600 million.
Collection of VAT on streaming services: since when will it apply?
The superintendent of the SunatGerardo López, stated that the project will be discussed in the Congress. Likewise, it points out that the Legislative Branch is the the only institution that can approve this measureso it is expected that, after the presentation of the package of proposals by the Executiveit could be applied at the end of the year.
Which Latin American countries already apply tax collection to streaming services?
- Argentina: An 8% tax applies on digital services, including streaming, in addition to a 21% VAT and the 30% PAIS tax.
- Mexico: Since June 2020, a 16% VAT applies to digital services, including streaming.
- Chili: Since June 2020, a 19% VAT applies to digital services.
- Colombia: Since 2019, a 19% VAT applies to digital services.
- Uruguay: A 22% VAT has been applied to digital services since 2018.
What is Netflix and since when has it been in Peru?
Netflix It is a platform streaming offering a wide variety of audiovisual content, including series, movies, documentaries and television programs. Founded in 1997 by Reed Hastings and Marc Randolph in Californiabegan as a DVD-by-mail rental service before evolving into streaming in 2007. Netflix has grown to become one of the largest entertainment services in the world, available in more than 190 countries. In addition, it produces original content under the “Netflix Originals” brand.
Netflix Is available in Peru since 2011. In that year, the streaming platform expanded its service to several Latin American countriesincluding Peru. Since then, Netflix has offered a growing selection of local and international contentadapting its catalog to attract the Peruvian audience with original and popular productions.
Source: Larepublica
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