Puerto Rico VAT 10.5% June 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 remain, and will be charged on top of VAT on certain goods and services.
Assembly challenges VAT implementation
The government’s plans to introduce VAT, as part of the conditions to secure new funding from the IMF, has not gone to plan. There have already been a number of delays to its implementation. On the 5 May, the latest challenge to the imposition of VAT came from the Senate. It has put up a Replacement Bill which would withdraw the planned June launch.