Starting December 1st, Peruvian users of Netflix They will have to pay more for their subscriptions due to the implementation of the General Sales Tax (IGV) of 18% on streaming services.
This measure, known as the “Netflix Rate”, was established by Legislative Decree No. 1630, approved by the Peruvian government, and aims to regulate the taxation of digital platforms.
New Netflix rates
Netflix has informed its users about the adjustments to its plans:
- Premium Plan: It will rise from S/ 44.90 to S/ 52.90 per month. This plan allows the simultaneous use of four screens and content in high definition (HD) and ultra high definition (4K).
- Standard Plan: It will increase from S/ 34.90 to S/ 40.90, allowing two simultaneous screens in HD quality.
- Basic Plan: It will go from S/ 24.90 to S/ 28.90, limited to a screen in SD quality.
The increase in rates, which varies between S/ 4 and S/ 8 depending on the plan, has generated various reactions among users. Some have expressed their discontent, while others were already expecting an adjustment after the announcement of the new tax.
What justifies the increase?
Netflix has indicated that the increase in prices responds to compliance with the VAT, a tax that will be collected by Sunat to regulate digital services in the country. The regulations, published in the official newspaper El Peruano, seek to level competition between international digital services and local companies that already pay taxes in the country.
The decision to apply VAT to streaming has generated debate. Although some users consider it a necessary step to ensure greater tax equity, others regret the impact on their family budgets.
The Peruvian government, for its part, maintains that the measure will allow more tax resources to be collected in a context of growing digitalization of services. In the meantime, users will have to evaluate whether to continue with their plans or look for alternatives in an increasingly competitive streaming market.
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