Peru to refund sales tax to foreign tourists

Peru plans to implement from next June the refund of the General Sales Tax (IGV) to foreign visitors, through the “Tax Free” system, said Thursday the Minister of Foreign Trade and Tourism, Luis Fernando Helguero.
Helguero said, in a statement released by his office, that in the Council of Ministers held on Wednesday a decree on this issue was approved, which will be published “shortly” and has the support of the Ministry of Economy and Finance (MEF).
The minister explained that the “Tax Free” is a system of promoting tourism by returning sales tax, or value added, to foreign tourists for purchases made in the country they visit.
He added that among the main benefits of this incentive is to promote the formalization of commercial establishments aimed at tourists; contribute to the achievement of sectoral goals, such as the increase in average expenditure and generation of foreign exchange, and promote shopping tourism and “multiplier effect” in the arrival of international tourists.
In addition, it is considered that it will generate an increase in sales in establishments dedicated to the tourist market, which will positively impact the national economy and boost commercial and economic activity in tourist destinations.
“All this comes hand in hand with the actions we promote to attract international visitors,” he said before noting that an international campaign to reactivate tourism has been presented that seeks to place Peru “as a unique, diverse, safe and competitive destination.”
The minister said that this initiative “has been achieving great success”, since “it was expected that the pattern in social networks would have an impact of 30 million people at the end of this month and to date it has exceeded 27 million”.
The ministry explained that the “Tax Free” incentive is applied in more than 37 countries around the world, including France, Spain, Italy, Germany and the United Kingdom, while in Latin America it already exists in Colombia, Uruguay, Argentina, Chile and Mexico.

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Original source in Spanish