Puerto Rico Releases Guidance on Upcoming Sales Tax Changes

Wednesday, June 24th, 2015

Puerto Rico Department of Revenue
Puerto Rico

The Puerto Rico Department of Treasury has released guidance on the changes that will take effect under Act 72-2015.

Effective July 1, 2015, the state portion of the tax rate will be increased to 10.5%. This means that the combined rate (with the municipal tax of 1%) will be 11.5%. Contracts that existed before July 1, 2015 will be exempt from the new higher tax rate for 12 months. Additionally, products and services acquired for construction projects beginning before May 30, 2015 will be exempt from the rate increase. Also effective July 1, 2015, resellers will be able to claim a credit for tax paid on resold items up to 100% of the tax owed on their monthly returns. Previously, resellers were only allowed to claim a credit of up to 75% of the tax owed on their monthly returns.

Effective October 1, 2015, business-to-business services and professional services will be subject to sales and use tax at a reduced rate of 4%. Prior to this date, business-to-business services were exempt from tax unless they were specifically listed as taxable, and professional services were excluded from the definition of taxable services.

Effective April 1, 2016, a Value Added Tax system (VAT) will take effect.


About TTR

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.

New York Adopts New Economic Nexus Rule

Wednesday, January 23rd, 2019 -Effective January 2019, a retailer located outside of New York is required to collect use tax if, during the p...

New Commercial Farmer Certification Process in Louisiana

Monday, January 21st, 2019 -Effective January, 15, 2019, the Louisiana Department of Revenue has a new certification process for commercia...

Service Repairs to Petroleum Storage Tanks Exempt in...

Friday, January 18th, 2019 -Louisiana's Board of Tax Appeals recently ruled that repairs on petroleum storage tanks were not taxable. ...

Nevada Exempts Feminine Hygiene Products in 2019

Wednesday, January 16th, 2019 -Last year, Nevada voters approved via ballot measure changes to the Sales and Use Tax Act of 1955. Voters amen...

Cleaning of Beer-Tap Lines Not Taxable in Ohio

Monday, January 14th, 2019 -The Supreme Court of Ohio recently ruled that cleaning beer-tap lines is not taxable. The taxpayer was...

Louisiana Court of Appeals Finds Marketplace Facilitators...

Friday, January 11th, 2019 -The Louisiana Court of Appeals has recently addressed the sales tax liability of marketplace facilitators. A c...