News › Weekly Alert Article

VAT Refunded to Foreign Tourists

12 Sep 2012

A VAT refund regime applicable to foreign tourists has recently been introduced to the Peruvian tax system. Such refund will apply to the purchase of goods within Peruvian territory and can be claimed by tourists when returning to their home countries. Taxand Peru explains the guidelines for the new VAT refund.

According to the new regulations, foreign tourists staying in Peru between 5 and 60 calendar days may be benefited with the VAT refund when buying goods of a minimum price of S/.50 each (approximately US$20) and only if the refund requested is at least S/.100 (US$39).

To be applicable for the refund, the goods must be bought from stores registered before the Tax Administration (SUNAT) using a credit card or a debit card. A "Tax Free" certificate issued by the store must be granted to the buyer for each invoice issued. The certificate must include, among other information, the tourist's name, their nationality and the number of credit or debit card certificates used for the purchase.

While specific procedure regulations are still pending, it has been established that the application for the refund, along with the required documentation (including the "Tax Free" certificate), must be filed before SUNAT prior to the departure of the tourist. SUNAT has a 60 day period to approve the refund, which will be made directly to the credit or debit card used for the purchase(s).


Taxand's Take

Although the VAT Law has always allowed VAT refund for tourists, this is the first time such benefit has been regulated in order to make it effective. With this new regulation Peru aims to promote tourism and catch up with other countries in South America that already apply the refund, such as Argentina and Colombia.

Your Taxand contacts for further queries are:
Rocio Liu
T. +511 61 04 747

Pablo Sotomayor
T. +511 610 4747

Taxand's Take Author