If Machu Picchu, the highland Andes, the fabulous Peruvian Amazon, or the Nazca Lines were enough reasons to visit Peru, now the possibility of buying souvenirs, handicrafts, or whatever you want duty-free, will be the last hook to crown your days in the Andean country. With this modality of Tax Free in Peru, the country enters the exclusive group of nations that apply this tax refund to tourists to purchase goods and/or services. This great benefit will be applied from June 2023, but we together the experts of Machu Travel Peru are ahead of ourselves in explaining to you how this modality of tax refund will work for tourists because it is always good to save a few cents, while you enjoy the charms of Peru!
All you need to know about the refund of IGV for tourists in Peru!
- The objective of Tax Free
- What is the IGV
- What you need to know before
- What documents are needed
- The process to refund IGV
The objective of Tax Free
Officially, Peru is tax-free and enters the exclusive list of countries that promote the international tourist flow in their territories. Countries like Argentina, Mexico, Ecuador, Colombia, and Uruguay already apply this exoneration, and now Peru.
This is the main objective of this benefit, incentive foreign tourism and reactive this industry so beaten by the COVID pandemic. In the process of planning a trip to Peru, the refund of IGV by shopping in Peruvian stores, markets, and malls will mean a main saving in the travel budget of the foreign tourist and will promote commerce, and the foreign exchange flow, too.
What is the IGV
The IGV is the acronym of Impuesto General de las Ventas (General Sales Tax) and replaces the concept of VAT that is more used in other countries like the belongings of the Europe Union. As its name indicates, the IGV is a general tax applied to the final sale value of a product, before reaching the hands of the consumer and its cost is 18% more as the final sale value product. Also, among the interesting facts about Peru, is that foreigners always paid VAT in Peru (In this case, the IGV). But from June, the VAT (In this case IGV) will be refunded in shopping made by foreigners in Peruvian territory, following simple steps.
What you need to know before
1. What is the entity in charge of refunding the IGV?
The Superintendencia Nacional de Administracion Tributaria SUNAT (National Superintendence of Tax Administration) is the Peruvian institution in charge to refund IGV. But, pay attention! This entity will work thought particular and private companies called “Collaborating entities”. These will really be the ones that make the return of the IGV to the tourist.
2. Not everyone can be a Tax Free establishment
Only authorized establishments along the Peruvian territory will be authorized by SUNAT and the Collaborating Entity to refund the IGV for purchase to tourists. These establishments will be identified by a sign hanging in a visible part of its front.
3. Does every purchased item generate an IGV refund?
Not all products bought in authorized establishments offer this benefit. Only those that are carried abroad of Peru by the same owner of the purchase are susceptible to offering the refund of IGV. The services are not included in the refund IGV. All products that do not meet these requirements will not be valid for an IGV refund.
4. Will the refund be made in cash or deposited to a card?
IGV refunds will be deposited in any debit or credit card that the tourist indicates by part of the collaborating entity. This refund will be given within a maximum period of 5 business days after having presented the IGV refund certificate to the collaborating entity. Cash refunds will not be available at this time.
5. When and where to demand my IGV refund?
The tourist will be able to demand his IGV refund in the Self-management kiosks, located at the international departure terminals, both air and sea, of Peru. At the time of leaving the country.
What documents are needed
Definitely, among your list of things to do in Peru, doing this easy tax refund process will help you make your trip to Peru cheaper. And, as we mentioned before, the documents to get a refund are few.
- Passport: Remember to take it with you! This document will be useful at the moment, asking for an invoice after any shopping in all authorized establishments. And, at the moment that the salesman enters your passport information in the virtual form of collaborating entity of SUNAT. This is with the final to generate a “TAX FREE” digital constancy with a code for the purchase made.
- Invoice: This can be physical or digital (sent to your email inbox) This document is delivered to the consumer when he finalizes paying for any shopping in the authorized establishments.
- Tax Free Mobile app: This is a mobile application that contains the Tax Free digital certificates associated with your passport number (Profile in the mobile app). This app is operated by a collaborating entity of SUNAT. Through this app, the visitor will be able to obtain a refund of the IGV.
- Tax Free digital constancy: This certificate will be sent to your profile account associated with the mobile app of the collaborating entity of SUNAT, once the purchase of the product and the payment are made.
Process to refund IGV
The norm already was dictated by the Peruvian government to come into operation from the month of June, and the SUNAT has just established the procedure for the reimbursement of the IGV for purchases made by foreign tourists.
1. Identify the Authorized Establishments
Not all establishments will be able to sell tax-free products. Only those selected by SUNAT (Peruvian Government Tax Office). Happily, there will be many, and it will be important that you identify them before making your purchase. Don’t worry, shops of all kinds are included!
In the coming weeks, the Peruvian government will launch the brand with which you can identify these establishments.
2. Make your purchase and ask for an invoice and the Tax Free digital constancy
When paying at the cashier for your purchase, since cash or credit or debit card, you will show your passport (Original document, no copies, no photos or screenshots on the cell phone) So the cashier will give you a physical invoice or send you an electronic one to your e-mail. Immediately, you will also have to demand Tax-Free digital constancy of that purchase.
At that moment, the cashier will fill out a digital form through the computer system of the collaborating entity of SUNAT with the data of your passport. And, done! Your Tax Free digital constancy of that purchase will be generated and it will be sent to your profile account on the collaborating entity mobile app.
3. Approach a Self-management kiosk or download the mobile app of collaborating entity
When you are in an international Peruvian departure terminal (Lima Airport, or Callao marine port) hours before your departure from Peru, you will have two options to demand a refund of the IGV of your purchases made in the Andean Country:
- Self-management kiosk: You can approach any self-management kiosk (similar to ATM machines) and enter your passport number (with which you made your purchases) After, automatically, these kiosks will show you all the Tax-Free digital constancy related to your passport number. Next, you will have to choose those certify that meet the requirements established by Peruvian legislation (purchases of products that are taken out of the country by the same owner) Finally, the interactive system of the self-management kiosk will assign you to a control channel: red or green.
- Mobile App: You will have to download the mobile app of the collaborating entity, create a profile with your passport data and scan a QR code (visible in popular zones of the terminals). Thus, the app will show you the Tax-Free digital constancy related to your passport number and your purchases made in the Andean country. Select those for which you want to demand an IGV refund (Remember, those purchases of products that can be carried abroad of Peru and can be transported by yourself are valid). In the same way, at the end of the selection, the app will assign you to a control channel: red or green.
4. Generate the registration of the IGV refund request
Either in both cases (Self-management kiosks or mobile app) If you are redirected to a control channel color green, you only have to enter the data of your credit or debit card to which you want to be reimbursed the total IGV and the system will generate a registration of the IGV refund request.
In case the system has directed you to a red control channel, you will have to go to SUNAT personnel located at the post of control enabled (where immigration control is realized) inside the terminal, in order to show in person your original passport, the products bought subjected to IGV refund, and the physical or digital invoices of those purchases. After face-to-face evaluation, SUNAT staff may deny or facilitate the registration of the IGV refund request. If approved, you must provide the information of your credit or debit card to which you want the IGV deposited.
5. Refund money for the tax-paid amount
The system will begin to make the refund of your IGV purchases to your credit or debit card from the fifth day after obtaining the registration IGV refund request.
“TRAVEL IS THE ONLY THING YOU BUY THAT MAKES YOU RICHER”
Now that you know all about this great benefit, all you will have to worry about is what will be the best time to visit Peru, because the free tax refund to foreign tourists is here to stay. Together with the Machu Picchu Travel team, We hope we have informed you clearly of the benefits, and the process to get this refund for taxes for shopping made in Peru. If you have other doubts about this benefit, or you want to ask about your experience in Peru, don’t hesitate to contact us at any moment!
Travel Peru is happy to help with anything regarding your trip to Machu Picchu and any tours around it. Make your Machu Picchu experience an unforgettable one!
