Peruvian Tax Withholding and Perception Systems Explained

Summary

This document explains how SUNAT's tax withholding and perception systems work in Peru. It covers the withholding mechanism for the Sales Tax (GST), the 6% withheld amount and the operations excluded from it, as well as the Proof of Perception scheme, its percentage range and the cases where it does not apply.

Key points

Withholding agents designated by SUNAT retain a percentage of the GST from suppliers when paying for operations, and pay the net amount.
The withholding amount is 6% of the purchase price.
Transactions under S/. 700.00, purchases settled by a purchase settlement, and sales documented by ballots or tickets are not subject to withholding.
Perception agents collect an advance payment of the GST on domestic sales of goods, and the customer must accept the perception.
The perception percentage is set by Supreme Decree, countersigned by the Ministry of Economy and Finance, based on a SUNAT technical opinion, and must be between 0.5% and 2%.
Perception does not apply to customers who are withholding agents, to customers on the exempt list, to final consumers, or when the SPOT mechanism operates.

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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.

FAQ

What is the withholding amount under SUNAT's withholding system?

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

What is the Proof of Perception?

It is a receipt issued by perception agents designated by SUNAT to collect an advance payment of the GST on the domestic sale of goods subject to this tax. The customer is obliged to accept the perception.

Within what range must the perception percentage be?

The percentage is set by Supreme Decree, based on a SUNAT technical opinion, and must be in the range of 0.5% to 2%.