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The General Sales Tax (GST) is one of the most important taxes in Peru, as it applies to the consumption of goods and services in the country. Although its concept is simple, calculating and managing it can generate doubts, especially among entrepreneurs and small business owners.
Knowing what GST is and how to calculate it correctly is fundamental to comply with tax obligations and maintain the financial health of your business. In this guide we explain what GST is, how to calculate it step by step and the keys to managing it effectively.
What is GST?
GST is a tax levied on the consumption of goods and services within Peru. Every time that you buy a product or pay for a service, a part of the price corresponds to this tax.
As a consumer, GST is already included in the end price, so you don't need to calculate it directly. However, if you are an entrepreneur or businessman, it is key to understand its calculation and application, as it affects the operations of your business.
Activities taxed with GST:
- Sale of movable property within the country.
- Provision or use of services in Peruvian territory.
- Construction contracts.
- First sale of real estate made by builders.
- Importation of goods.
How to calculate GST step by step?
In order for you to fully understand what GST is, it is important that you know the step-by-step to calculate it.
Step 1: Identify the base price of the product or service
The base price is the value not including the GST. For example, if you sell a product at S/ 1,000, this amount is your taxable base.
Step 2: Apply the GST rate
The current GST rate is 18%. To calculate the GST, multiply the base price by 0.18.
Formula: GST = Base price × 0.18
Example: If the base price is S/ 1,000: GST = 1,000 × 0.18 = S/ 180
Step 3: Add the GST to the base price
The end price is the sum of the base price and the calculated GST.
Formula: End price = Base price + GST
Example: End price = 1,000 + 180 = S/ 1,180
What is GST in business and how to calculate it?
In business activities, calculating the GST is a little more complicated, as it is calculated by subtracting the GST from purchases from the GST from sales. For example:
- Sales GST: If you sell products for S/ 1,000, the GST generated is: → 1,000 × 0.18 = S/ 180
- GST on purchases: If you bought goods for S/ 600, the GST paid is: → 600 × 0.18 = S/ 108
- GST to be paid: → GST sales − GST purchases = 180 − 108 = S/ 72
This means that you will have to pay SUNAT (National Customs and Tax Administration Superintendency) S/ 72 as GST after applying the formula in this example.
When should GST be paid in different businesses?
The time to pay GST depends directly on the economic activity carried out. Here are some of the cases:
- Sale of goods: When payment receipt is issued or the good is delivered, whichever occurs first.
- Provision of services: When payment receipt is issued or remuneration is received.
- Importation of goods: On the date on which release for consumption is requested.
- Construction contracts: When the receipt is issued or the income is received.
Step-by-step to declare and pay GST
Now that you already understand what GST is, it is also important that you know the step-by-step to declare it to SUNAT in the event that you have a business.
The payment and statement of the GST are made monthly through the SUNAT website (www.sunat.gob.pe). The deadline depends on the last digit of the taxpayer's RUC (Company Registration No.). To make the declaration:
- Enter the Online Operations platform. Click here to go to this SUNAT website.
- Fill out the corresponding form with the details of your sales and purchases.
- File the statement and make the payment online or at authorized entities.
Learn more in Finance for Entrepreneurs
If you want to learn more about taxes and financial management for your business, we invite you to explore the series "Finance for Entrepreneurs" of the Wiese Foundation. Find practical resources and strategies designed to drive the success of your venture.
