IGV Calculator ONLINE in Peru
IGV (18%) for the year 2024
What is the IGV?
The IGV (General Sales Tax) in Peru is an indirect tax applied to the sale of goods and services within the country, similar to VAT in other countries. With a standard rate of 18%, the IGV affects most commercial transactions, although some categories of goods and services may be subject to a reduced rate of 5% or be exempt. This tax, which is collected from the final consumer, finances public spending in key areas such as education, health, and infrastructure. Although the seller is responsible for collecting and remitting the IGV to the State, the final cost of the tax falls on the buyer, integrated into the price of the goods and services purchased.
How to calculate the IGV?
The amount of IGV is calculated by applying 18% to the base price or amount, in other words, by multiplying the base price by 0.18.
IGV = Base amount * IGV Rate (0.18)
If you have the total price and want to know the base price or the VAT you are paying for a product or service, you must divide the total price by 1.18
VAT = Total Price – Base Price
Base Price = Total Price / 1.18
