From today they apply the VAT reduction for restaurants and travel companies.

Today, Thursday, September 1, a law came into force that reduces the General Sales Tax (IGV) from 18% to 8% for companies operating in the tourism industry and carrying out activities related to restaurants, catering and food dealers.

The measure is intended to support economic recovery this business economic segment and will apply until December 31, 2024.

Under Supreme Decree 013-2013-PRODUCTION, businesses that are considered micro and small enterprises according to their sales volume can benefit from this tax exemption.

The norm indicates that they microenterprises those with annual sales up to a maximum amount of 150 UIT or S / 690 thousand, while it is indicated that small companies are those with annual sales above 150 UIT and up to a maximum amount of 1700 UIT, which is equivalent to S / 7 million 820 thousand.

MEF versus measure

A week ago, the head of the Ministry of Economy, Kurt Burneo, expressed disagreement with the law promulgated by the government.

“The question of reducing VAT to 8%, I think that this was not a very successful measure, I just arrived at the office and found him armed. I told the president and prime minister what I thought, but the case had already been launched. and it’s not perfect, it can’t be reduced taxes no way,” he said during the presentation of the Multi-Year Macroeconomic Outlook 2023-2026.

Earlier, a document prepared by the MEF showed that it rejects the law, warning that it will benefit the largest companies in the sector.

The Ministry argued that the sales criteria by which companies are determined mips in law, they may end up applying VAT reductions to large companies, including those from medium-high and high socio-economic strata, and large franchises.

While it has been assured that between 170,000 and 200,000 restaurants will benefit, MEF indicates that around 62,000 businesses will not see it. VAT reduction because they belong to the Unified Simplified Regime (RUS), which does not currently pay VAT.

In addition, the ministry warns that this measure will reduce tax collection by S/460 million a year. Overall, it is estimated that the state could lose around S$1,150 million if the measure were implemented before 2024.