Peru has published Legislative Decree No. 1347, which provides for a conditional reduction in the value added tax (IGV) rate depending on whether collection targets are met. Currently, a standard 16% IGV rate applies plus a 2% municipal sales tax, resulting in effective rate of 18%. If the annual collection of IGV, net of refunds, reaches 7.2% of GDP by 31 May 2017, the standard IGV rate will be reduced from 16% to 15% effective 1 July 2017. Click the following link for Legislative Decree No. 1347 (Spanish language).