VAT is the abbreviation of Value Added Tax. VAT is in general due when goods and/or services are sold. It applies to most goods and services that are bought and sold for use or consumption in Peru. It is a consumption tax because it is ultimately borne by the final consumer.
Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities.
Where digital services are provided by a supplier that is non-resident in Peru (as is the case for Zoom) the responsibility to collect and remit VAT depends on whether the customer is purchasing Zoom services in relation to its business activities in Peru or in an individual capacity.
If the customer is purchasing Zoom services for private or personal use i.e., not in relation to its business activities in Peru, VAT will be collected on the supplies made to the customer by Zoom. If the customer purchases Zoom services in relation to its business activities in Peru and provides Zoom with a valid Registro Único del Contribuyente (“RUC”) that indicates the customer has business activities in Peru, Zoom will not charge VAT on its invoices. Instead, VAT should be self-assessed, under the reverse charge mechanism, by the customer.
Under Peruvian VAT rules, Zoom is required to collect and remit Peruvian VAT on services provided to customers that do not conduct business activities in Peru.
Zoom determines whether a customer conducts business activities in Peru dependent on whether a valid RUC has been provided and where the RUC indicates, as per the RUC queries option on the official SUNAT website, that the customer undertakes business activities in Peru.
Customers purchasing Zoom services in relation to their business activities in Peru, which have provided a valid RUC that indicates they undertake business activities in Peru, will not be charged VAT but may be required to self-assess VAT on the services purchased from Zoom.
A RUC is a unique 11-digit number issued by Superintendencia Nacional de Administración Tributariathat (SUNAT) that identifies legal entities and individuals in Peru.
The RUC issued to individuals (whether carrying on business in Peru or not) begins with 10, the RUC issued to legal entities begins with 20.
If you are a business customer and you want to provide your RUC to Zoom, follow the steps below depending on where your billing portal is located in the left navigation menu of the Zoom web portal. Not sure how to identify where your billing portal is located? Learn how to locate your billing settings.
Zoom utilizes a real-time validation against the tax authority database to confirm that the RUC is valid and that the RUC belongs to a customer that undertakes business activities in Peru. You are required to notify us if there is a change to your business status and/or RUC.
Further, Zoom performs periodic validation checks of customer RUC’s to ensure that the RUC remains valid. If, during these periodic validations, it is identified that your RUC is no longer valid, or that you do not undertake business activities in Peru, Zoom may automatically update your account so that future invoices are subject to VAT.
Where this happens, VAT will be charged on all future invoices until such time that a valid RUC that indicates that you undertake business activities in Peru is provided.
If a customer in Peru is unable to supply a valid RUC or provides a RUC that does not indicate that you undertake business activities in Peru, Zoom will charge and collect Peruvian VAT on its supplies to you.
Zoom will treat any customers with a ‘Sold To’-address in Peru as being resident in Peru. This information is subject to cross-referencing against other data to verify that the ‘Sold To’ country is accurate.
It is your responsibility as a customer to ensure that your ‘Sold To’-address is accurate.
No, VAT applies to all sales of Zoom’s services in Peru where the customer does not make the purchase in relation to their business activities in Peru and provide a valid RUC.
No. VAT will be charged on all supplies made to charities and other organizations unless the customer provides a valid RUC that indicates they undertake business activities in Peru.
Customers who provide a valid RUC that indicates they undertake business activities in Peru will not be charged VAT, but may be required to self-assess the VAT due under the reverse charge mechanism. There are currently no other exemptions available (under guidance applicable to non-resident suppliers of digital services).
Customers who provide a valid RUC that indicates they undertake business activities in Peru will not be charged VAT, but may be required to self-assess the VAT due under the reverse charge mechanism.
You are required to notify Zoom if there is a change in your business and/or RUC status.
The RUC may be updated at any time in Zoom's billing portal. If you provide a valid RUC that indicates that you undertake business activities in Peru, Zoom will not charge VAT on future invoices. However, you may be required to self-assess, declare and pay the tax on your Peruvian VAT return via the reverse charge mechanism.
Where VAT has been charged on previous invoices as a valid RUC which indicates that you undertake business activities in Peru was not provided, under the current Peruvian VAT rules, it is not possible for Zoom to refund the VAT charged. This is on the basis that VAT was correctly charged at the time of supply. In this case, you may be able to claim the VAT collected by Zoom as a VAT credit on your Peruvian VAT return.
Every customer is unique and so are their specific tax circumstances. The above-stated information should not be considered as tax advice, but as a general overview of relevant tax rules. Zoom cannot provide you with tax advice for your individual situation, and therefore, we strongly recommend speaking with a professional tax advisor for tailored advice.