Peruvian Tax Withholding and Perception Systems Explained

Understanding SUNAT's Tax Withholding and Perception Systems

Tax Withholding Mechanism

Withholding refers to a proof of payment issued by certain taxpayers, designated by SUNAT as withholding agents. By order of supervision, these agents perform the retention of a percentage of the Sales Tax (GST) from their suppliers when making payments for operations. In this sense, they cancel the transaction amount less the amount withheld.

Similarly, SUNAT can determine the exclusion of a retention agent. Since retention is applied to the GST, this scheme does not apply to transactions involving the sale of goods that are exempt from or unaffected by this tax.

The withholding amount is 6% of the purchase price. This means the purchaser pays the total amount less the withheld portion.

Transactions Not Subject to Withholding:

• Operations sustained with a purchase settlement.
• Transactions for which payment is made for less than S/. 700.00.
• Operations where the supplier has the quality of a "good contributor."
• Transactions with other withholding agents.
• Transactions where sales are documented by ballots or tickets.
• Operations where the SPOT mechanism operates.
• Operations conducted by units of the Public Sector.
• Transactions with suppliers who are also perception agents.

Proof of Perception System

Understanding Proof of Perception

Proof of Perception is a receipt issued by certain taxpayers, designated by SUNAT as perception agents. Its purpose is to collect an advance payment, a percentage of the GST applicable to the domestic sale of goods subject to this tax. The customer is obliged to accept the corresponding perception.

This scheme does not apply to transactions involving the sale of goods that are exempt from or unaffected by VAT.

The amount of perception is determined by applying a percentage to the sale price. This percentage is indicated by a Supreme Decree, countersigned by the Ministry of Economy and Finance, and based on a SUNAT technical opinion, which must be in the range of 0.5% to 2%. For this purpose, the selling price is defined as the sum that includes the sale value and the taxes levied on the operation.

A voucher is issued that entitles a tax credit.

Cases Where Perception Does Not Apply:

• When the customer has the status of a VAT withholding agent.
• When the customer appears in the "list of entities that may be exempted from the levying of VAT."
• When performing operations with customers who have the status of final consumers.
• When the SPOT mechanism operates.