IGV Calculator for Peru
In Peru the consumption tax is not called IVA but IGV — Impuesto General a las Ventas — and the rate you see on any receipt is 18%. That 18% actually hides two parts: 16% of IGV proper plus a 2% Municipal Promotion Tax (IPM), but in practice they are applied together as a single rate. This calculator works in the two everyday directions. With "Add IGV" you start from the sale value and add the 18% to draw up an invoice or a quote. With "Remove IGV" you do the reverse: you enter the tax-inclusive price and extract how much was the net value and how much the tax.
The result is shown with the local currency symbol. In Peru the consumption tax is called IGV and its total rate is 18% (16% IGV plus 2% Municipal Promotion Tax).
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How it works
The sale value is the price of the good or service before tax; the final price you pay is that value plus 18% IGV. When you buy as a consumer and receive a boleta, the price already has the IGV inside: if a purchase says PEN 118, the hidden sale value is PEN 100 and the IGV is PEN 18, because the net is recovered by dividing the total by 1.18 (not by subtracting 18%). When a business issues a factura, by contrast, it separates the sale value and the IGV on distinct lines: on a service with a PEN 1,000 sale value, the 18% IGV is PEN 180 and the total is PEN 1,180. The difference matters because only the factura grants a tax credit (crédito fiscal): the business can subtract the IGV it paid on purchases from the IGV it charged on sales and remit only the difference to SUNAT. This calculator does both sums — adding the 18% or extracting the net from a tax-inclusive price — and shows the tax separately.
IGV in Peru in 2026: an 18% that is 16% + 2%
The rate everyone knows as "the 18%" is actually the sum of two taxes that always travel together: the IGV in the strict sense (16%) and the Municipal Promotion Tax or IPM (2%), which funds municipalities. For the consumer and most businesses it makes no difference: it is computed and invoiced as a single 18%. There are no reduced rates by product type as in Europe; the Peruvian mechanism is different: instead of lowering the rate on certain goods, the law leaves them directly exempt or outside the tax. These are the three treatments:
| Treatment | What it means | Examples |
|---|---|---|
| Taxed at 18% | The general rule for goods and services | Clothing, electronics, restaurants, professional services of companies, commercial leases |
| Exempt (Appendix I and II) | The sale pays no IGV because it is on the statutory list | Unprocessed agricultural food (potatoes, rice, vegetables), fresh fish, public passenger transport, bank credit services |
| Outside the tax (inafecto) | Operations beyond the scope of the tax | Exports, payroll salaries, sale of second-hand real estate between individuals |
The Amazon region, detracciones and the tax credit
Peru has a geographic quirk: the Amazon Law (Ley de la Amazonía) exempts businesses located in the jungle (Loreto, Ucayali, Madre de Dios and parts of other regions) from IGV on operations carried out within that region, to make local consumption cheaper. Beyond that, the Peruvian system adds two mechanisms that do not exist in other countries: the detracciones (on certain services the client deposits a percentage of the IGV directly into a supplier account at the Banco de la Nación, as a guarantee of tax payment) and the percepciones and retenciones (IGV advances collected by certain agents designated by SUNAT). For the ordinary business, the key thing is still the receipt: only the electronic factura grants a tax credit. Small taxpayers on the Nuevo RUS (Régimen Único Simplificado) issue a boleta and do not charge IGV broken out, but they cannot use a tax credit either.
The reduced 8% rate for MYPE restaurants and hotels
On top of the general 18%, since 2022 and extended until 31 December 2026 there is a special IGV rate for micro and small enterprises (MYPE) in restaurants, hotels and tourist lodging. Instead of the 16% IGV, these businesses apply 8%, to which the 2% Municipal Promotion Tax is added, giving an effective rate of 10% instead of 18%. The relief aims to revive the tourism and hospitality sector after the pandemic. It is not a rate the consumer chooses: it applies only if the business meets the requirements (qualifying as a MYPE by sales level and having restaurant or hotel service as its main activity). For every other sector, and for large companies within the same sector, the 18% still applies.
| Regime | IGV | IPM | Effective rate |
|---|---|---|---|
| General (common rule) | 16% | 2% | 18% |
| MYPE restaurants/hotels (until 31/12/2026) | 8% | 2% | 10% |
| Exempt (Amazon / Appendices) | 0% | 0% | 0% |
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Preguntas frecuentes
- Is the IGV in Peru 18% or 16%?
- Both figures are right depending on how you look at it. The IGV in the strict sense is 16%, but it is always charged together with the 2% Municipal Promotion Tax (IPM), so the effective rate you pay and that appears on your receipt is 18%. To calculate prices use 18%; the 16%+2% split only matters at the level of the business tax return.
- Which products are exempt from IGV?
- The law has two lists (Appendix I for goods and Appendix II for services) with the exempt operations: unprocessed agricultural food such as potatoes, rice, vegetables and fresh fruit, fresh fish, urban public passenger transport, credit services of financial institutions and cultural shows, among others. Those goods are sold without adding the 18%.
- Does the Amazon region pay IGV?
- Generally no, for consumption within the region. The Amazon Law exempts businesses located in Loreto, Ucayali, Madre de Dios and other jungle areas from IGV on the operations they carry out and consume there, as an incentive to make life cheaper in those regions. If you buy something in Lima, by contrast, you pay the normal 18%.
- Is a boleta enough or do I need a factura for the tax credit?
- To use a tax credit (deduct the IGV on your purchases) you need a factura: the boleta does not grant that right. That is why businesses always ask their suppliers for a factura. As a final consumer, the boleta is enough; only if you are going to deduct the expense in your business is it worth requesting a factura with your RUC.
- How do I get the sale value from a tax-inclusive price?
- Divide the total price by 1.18 (do not subtract 18%). For example, a total of PEN 118 divided by 1.18 gives a sale value of PEN 100, and the difference — PEN 18 — is the IGV that was included. Choose "Remove IGV" in the calculator and it does exactly that sum for you.