The National Superintendency of Customs and Tax Administration (Sunat) announced that it will begin to tax sports betting and e-sports through a new regulatory framework. Víctor Mejía, head of Sunat, explained that this regulation includes both local and international platforms, which operated without an established tax scheme.

With this provision, online betting, including those made on competitive video games such as Dota 2, will be subject to specific taxes. According to the agency's projections, the implementation of the tax will allow collecting around S/70 million during the first year of application, contributing significantly to the country's public resources.

Sunat will apply taxes to sports betting and e-sports: When will it come into force?

The new tax framework, which includes sports betting houses and e-sports platforms, will come into force in April 2025. Before its implementation, Sunat will publish the final provisions in December 2024 to receive comments from those involved. This initiative is part of an effort to formalize sectors that have experienced accelerated growth due to technological expansion.

Víctor Mejía pointed out that five large local companies concentrate 80% of online sports betting in Peru, while another 12 international platforms will also be subject to the new tax. The inspection will be progressively expanded to cover all operating platforms in the country, consolidating an inclusive tax framework.

This tax will allow platforms to contribute to the public budget through the regular payment of taxes, closing a significant tax gap. In addition, Sunat predicts that the growth of the sector will increase collection figures in the coming years, especially with the incorporation of international platforms with a greater reach.

What is the Selective Consumption Tax (ISC) and why will it apply to sports betting?

The Selective Consumption Tax (ISC) is a tax designed to regulate products or services that can generate negative externalities. In this case, the main objective is to discourage the abuse of betting and mitigate social problems associated with compulsive gambling.

According to the regulations, sports betting and e-sports will not be subject to VAT, but they will be subject to ISC. Sunat pointed out that this approach allows a more specific approach to the social and economic risks associated with these activities. As it is a rapidly growing sector, tax regulation seeks to establish a balance between the promotion of economic activity and the protection of consumers.

Netflix and Max raised their subscription price due to the inclusion of VAT

Since August 2024, streaming platforms such as Netflix and Max adjusted their rates due to the application of the General Sales Tax (VAT). This measure, promoted by the Ministry of Economy and Finance (MEF), seeks to expand the tax base by including non-domiciled foreign companies that offer digital services to Peruvian users.

The VAT applied to digital services has allowed the State to collect additional income, leveling the competitive conditions between local and international companies. According to the MEF, this initiative seeks to ensure that all digital market players contribute to the country's economic development.

Although digital betting platforms are not subject to VAT, their inclusion under the ISC reflects a strategic approach by the government to address different sectors of the technology market. Together, these measures will allow for more efficient control of digital services and strengthen tax collection.