Peru Since 2003 – Comex notes in its latest publication – income from digital services obtained by companies not resident in the country is taxed. With regard to value-added tax, it is applied to the use of digital services provided by non-resident companies, referring to those used by a natural or legal person within the national territory. Although digital services are theoretically taxed, in practice the collection mechanisms are not well defined.
Some of the most recent invoices aim to facilitate the collection of (value-added tax on digital services. As mentioned, as part of facilitating the collection of this tax, financial entities will be the key to deduction).
Hence, according to the explanatory statement for Bill 6181Between $ 25 million and $ 44 million would be wasted annually.
Therefore, collecting a tax of this type would generate higher collection and a more equitable system of competition between companies in the sector. However, to achieve this, effective methods of collection are necessary, in order to avoid problems such as double taxation and the various complications of withholding.
For this, the recommendation of the Organization for Economic Cooperation and Development refers to the Union. It is about registering non-resident service providers – ideally, with a simplified procedure – in the registry of taxpayers in the country in which they provide the service. With this, suppliers have a duty to charge, collect, and pay the generated taxes. An alternative to this procedure is to block payment methods; However, this option is not without limitations.
According to the Islamic Development Bank report, withholding means of payment is a complication that the bank has no way of knowing whether a payment made to the foreign supplier is subject to collection.
The highly publicized Argentine case was that the tax on the OnePlus provider’s digital platforms also wrongly affected transactions for the purchase and sale of cellular equipment, resulting in double taxation.
Likewise, financial entities will not be able to determine or assume the place of consumption, and therefore, if it corresponds to consumption it must be taxed as it is occurring in their jurisdiction.
The method will also exclude all transactions paid with bank cards belonging to non-resident banks or by various payment methods. In addition, withholding means of payment implies a greater administrative burden on entities responsible for collection, such as financial entities.
“International experience points to the need to follow the collection method according to OECD guidelines. This is to avoid charging the private sector with charges that may hinder its operations. However, given the insistence on applying withholding in payment methods, the IsDB is proposing a hybrid model that combines both options, as it will be necessary to leave the possibility of appointing more agents open to collect taxes generated by non-suppliers. Is established and cannot operate according to the plans proposed by the relevant agency“.
For Comex, it is important not to forget that all financial policies applied to the digital economy must be formulated and reviewed very well, in order to avoid a technological pause in society.
“In light of this, it is evident the need for an analysis of the regulatory impact of fiscal policies, so that each initiative has a solid technical basis, avoiding over-regulation and, above all, allowing clarity and simplicity in understanding the current tax scheme.“.