Introduced in 2010, eInvoicing in Peru is undergoing a major shift in 2018, reaching an increasing number of taxpayers and requiring an entirely new technical structure.
Summary of the Peru eInvoicing Law
Peru’s new and updated regulations expand the universe of taxpayers mandated to comply with electronic invoicing in that country. In this context, Peru is modernizing the technical infrastructure of its System of Electronic Emissions (SEE), moving to an Operator of Electronic Services (OSE) model. These OSEs, or third-party software providers, will validate and remit eInvoices to the tax administration within the framework of the new version 2.1 of the standard eInvoicing format (UBL). With this change, the SUNAT, Peru’s tax authority, is redefining the technical structure of the SEE.
What Does It Mean?
Peruvian taxpayers that are required to issue electronic invoices must adapt their systems to comply with the new standard UBL 2.1.
Who Must Comply?
The Peru eInvoicing mandate to upgrade to version 2.1 of the UBL system reaches to all taxpayers with e-invoicing obligations in Peru. In addition to that, the SUNAT expanded its eInvoicing requirement to all significant taxpayers. The complete list of mandated taxpayers in Peru is on the SUNAT’s website, along with the date each is required to start complying and the specific documents that they will be required to issue electronically.
Furthermore, the SUNAT established that exporters, new taxpayers registered in the regime of small and medium-sized taxpayers, and those that have income of 150 tax units or more must issue electronic invoices. (One tax unit is equivalent to US$1,245).
All taxpayers required to issue electronic invoices are required to issue electronic receipts as well.
When Is It Effective?
Under this new decree, taxpayers must issue electronic invoices based on the following schedule:
- January 1, 2018: All taxpayers that are required to withhold or collect the VAT of Peru or that have been designated as large taxpayers in that country and whose VAT number is included in annex I of the Resolution 155-2017.
- May 1, 2018: Taxpayers whose taxpayer identification number is included in annex II of the Resolution 155-2017.
- August 1, 2018: Taxpayers whose taxpayer identification number is included in annex III of the Resolution 155-2017.
- November 1, 2018: Taxpayers whose taxpayer identification number is included in annex IV of the Resolution 155-2017.
Regarding the changes related to upgrading version 2.1 of the UBL, that change should be implemented no later than July 1, 2018.. Version 2.0 will no longer be accepted.
What is Required?
UBL version 2.1 is mandatory for:
- eInvoices (Factura Electronica)
- eReceipts (Boletas de Venta)
- Credit Notes for Invoices and eReceipts
- Debit Notes for Invoices and eReceipts
- Daily Invoice Summary Reports
- Reports of Cancellations (Comunicacion de Baja)
- Receipts for Public services (Recibo Electronico SP)
- Delivery Documents
What Are the Penalties for Non-compliance?
Sanctions vary depending on the severity of the infraction, ranging from fines to operational shutdowns.
Issuing eInvoices that do not comply with the conditions and characteristics established by law are subject to a fine of 50% of the Fiscal Units (UIT; 1 fiscal unit is equivalent to approximately US$600) or closing of facilities. According to the SUNAT, the fine is applied to those that commit an infraction for the first time. The second time, the SUNAT closes the establishment for a period ranging from five to 10 days, depending on the number of times the infraction has occurred. The SUNAT also has discretionary power to graduate these sanctions depending on the conditions of the taxpayer and the severity of the infraction.
What Do Companies Need to Do Now?
It is essential that taxpayers analyze their current situation and evaluate what modifications will be necessary in order to be able to adequately comply with fiscal provisions without setbacks. In other words, taxpayers must first verify the date when they are required to comply with the electronic invoice mandate if not already required to do so, and second, taxpayers should make sure that the system used complies with the new UBL 2.1 standard.
As part of this process, keep in mind that invoicing rules change frequently, and organizations with global footprints or aspirations will face similar requirements in other jurisdictions. The selected approach to eInvoicing compliance should be flexible to grow with the changing requirements and with your business.
Named the first authorized OSE in Peru, Sovos manages eInvoicing compliance for thousands of companies across the globe. Contact us to see how our Intelligent Compliance approach safeguards companies from the risks and burdens of Peru eInvoicing.
About the Author
As Tax Counsel, Ramon is licensed to practice law in the Dominican Republic and is a member of the Dominican Bar Association. He has a Certificate Degree from Harvard University as well as a JD from the Universidad Autonoma de Santo Domingo.Ramon has written many essays about tax administration, and for one of them won the first prize in the international essays contest sponsored by the Inter American Center of Tax Administrations (CIAT). Prior to joining Sovos Compliance, Ramon worked for more than 10 years in the Department of Revenue of the Dominican Republic where he served as Deputy Director. He is proficient in French and Spanish.More Content by Ramon Frias