Puerto Rico

Puerto Rico cuts Sales Tax to 7%

April 4th, 2018

Puerto Rico has announced on 2 April a new fiscal budget which includes plans to cut its Sales and Use Tax from 11.5% to 7%. The rate for professional services will be reduced to 3% from 4%.  There are also cuts to the corporate and personal income tax rates. The consumption tax rate cut is …


Puerto Rico

Puerto Rico e-services VAT

August 16th, 2017

Puerto Rico is considering introducing 15% VAT on the provision of electronic services, including streaming/downloads of games, music etc, e-books, online software, apps and member websites.  This would include foreign providers of such services, including iTunes, Google Play, Netflix, HBO and Spotify. Puerto Rico has struggled to manage its state deficit, and has attempted to replace …


Puerto Rico

Puerto Rico Sales and Use Tax

August 9th, 2017

Following last year’s abandoned attempt to introduce Value Added Tax, Puerto Rico has implemented reforms to establish another effort as it seeks to stabilise its poor fiscal position. The Legislative assembly is now considering the phased withdrawal of the existing Impuesto a las Ventas y Uso tax.  This sales and use tax on B2B sales …


Puerto Rico

Puerto Rico Senators block VAT introduction

May 27th, 2016

The plan to introduce 10.5% VAT in Puerto Rico in June 2016 has been thrown into confusion. Senators yesterday approved a Bill to strike down the Governor’s plans to replace the existing 4% Sales & Use Tax next month. The indirect tax regime change over would have raised much-needed funds to help manage a multi-billion …


Puerto Rico

Puerto Rico VAT 10.5% June 2016

May 19th, 2016

The Puerto Rican Treasury Department has confirmed further details on the new VAT regime to be introduced. The new VAT rate will be 10.5%. The implementation date will be 1 June 2016, and will replace the existing Sales & Use Tax. The VAT registration threshold will be $125,000. The current Municipal Tax of 1% will …


Puerto Rico

Puerto Rico VAT implementation

April 23rd, 2016

As Puerto Rico prepares to introduce a Value Added Tax to replace its current Sales & Use Tax, the Treasury Ministry has published guidance on the implementation rules. The scheduled transition date is currently 1 June 2016, although there have been several delays on this already. Some of the new guidance covers: the new, monthly …


Puerto Rico

Puerto Rico launches VAT April 2016

January 22nd, 2016

Puerto Rico has reconfirmed that it will replace its existing Sales and Use Tax with Value Added Tax on 1 April 2016. However, details over processes and forms still remain casting doubt on this latest launch date. The Puerto Rican tax authorities confirmed a phased launch of VAT, starting with a general regime covering liabilities, …


Puerto Rico

Puerto Rico relaunches VAT at 11.5% for 2016

May 16th, 2015

The government of Puerto Rico has reached a new compromise in an attempt to reverse the decision to abandon the implementation of VAT. The introduction of VAT is seen as a key reform as the country struggles to bring its deficit and debt levels under control. The new plan will include an increase in the …