Puerto Rico Temporarily Exempting Some Companies from Sales and Use Tax

Tuesday, November 14th, 2017

Puerto Rico Capitol Building in San Juan
Puerto Rico

Puerto Rico has released an administrative determination stating that small and medium-sized companies are temporarily exempt from collecting sales and use tax on goods and services while Puerto Rico is under a state of emergency due to Hurricane Maria. The temporary exemption is effective from November 20, 2017 to December 31, 2017.

The exemption applies to companies with an annual sales volume of $1,000,000 or less that are not considered large taxpayers. For companies that started operations after August 31, 2016, the exemption applies if their average monthly sales would not exceed $1,000,000 over 12 months. Companies that started operations after July 31, 2017 are presumed to qualify.

The Department of the Treasury will issue exempt merchant temporary certificates to qualifying companies, which must be displayed at their business location.

Puerto Rico is also instituting a temporary use tax exemption on the purchase of inventory for resale. Qualifying companies must present a certificate of exempt purchases and services (Form 2916) along with an exempt merchant temporary certificate to make exempt purchases for resale. This exemption is also effective from November 20, 2017 to December 31, 2017.

https://www.ttrus.com/Puerto Rico Temporarily Exempting Some Companies from Sales and Use Tax

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Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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