Are You Prepared for Peru’s Impending Libros Requirements?
Although Peru’s e-invoicing requirements don’t go into full effect until the middle of next year, libros reporting extensions are due at the beginning of 2016. Companies MUST prepare now to meet these reporting requirements or risk fines and penalties. And unlike libros requirements throughout much of Latin America – Peru’s are significantly complex, more similar to the depth of information requested in Mexico’s eContabilidad model.
Here are the top four questions we’re asked as companies prepare for this new mandate.
Who is affected?
Any business operating in Peru with income equal to or greater than 150 UIT ($180,000 USD) is subject to the programa libros electronicos (PLE) requirement to file electronic reports for all sales and purchases. Those with over 3,000 UIT ($3,696,000 USD) in income must submit more than 10 accounting reports electronically beginning in January 2016.
What is required?
The standard reports required include Compras (purchases), Ventas (sales), Libro Diario (daily ledger) and Libro Major (general ledger), as well as additional reports for principal contributors.
What are the risks?
- .2% of net income for any language other than Spanish and currency other than Peru’s used in the reports
- .3 to .6% of net income for inaccuracies in the reports
- Up to 30% tax penalty for missing or invalid records
Plus, inaccurate, delayed and missing reports trigger audits, potentially resulting in even greater fines and penalties.
How do we prepare?
The most important consideration as you prepare for compliance with the libros reporting mandate is to remember the big picture. Although this mandate is separate from Peru’s e-invoicing requirements, an error in one place will trigger errors in other reports. Managing compliance through one integrated system within your ERP minimizes compliance risks and automates these reporting requirements.