Puerto Rico Repeals Value Added Tax (VAT)

Jun 3rd, 2016

The Puerto Rico legislature has voted to repeal the new Value Added Tax (VAT), which had been set to take effect on June 1, 2016.

Puerto Rico's Sales and Use Tax (SUT) will remain in effect at a rate of 10.5% with an additional municipal rate of 1%. The 4% Special-SUT will remain in effect for services performed for other merchants and for qualified professional services.

Implementation of the state's new online portal, the Unified System of Internal Revenue (SURI), will be delayed until further notice due to the repeal of the VAT. Taxpayers should continue to file through the Integrated Merchant Portal (PICO).