Read our insights

The Puerto Rico Treasury Department published a new version of the monthly Sales and Use Tax Return that should be used for the filing of the monthly Sales and Use Tax return corresponding to October 2021.

For decades Puerto Rico has been known to be a significant player in the global manufacturing sector. Let’s look at what have been the facts and today’s current scenario.

The Puerto Rico Department of the Treasury “PRTD” issued Administrative Determination 20-01 “AD 20-01” to provide a temporary exemption from the Puerto Rico Sales and Use Tax “SUT” to individuals in those taxable items acquired in Puerto Rico that are considered “prepared foods”, “carbonated drinks”, “confectionery products” and “candies” hereinafter and collectively, “prepared foods”, as defined in Section 4010.01 of the Puerto Rico Internal Revenue Code of 2011, as amended “Code”.

The continuous aim of the current administration has been the provision of the adequate conditions for the resurgence and eventual re-development of Puerto Rico’s economy.

On November 6, 2017, the Committee for the Authorization of Expenditures and Tax Concessions issued Resolution No. 2017-10 to modify the amount and time limitation rules established by Resolutions 2017-05, 2017-08 and 2017-09 for the use of Tax Credits granted under various Puerto Rico incentive acts.

On November 10, 2017, the Puerto Rico Treasury Department issued Administrative Determination 17-26 providing certain PYMES a temporary exemption period from the collection of the sales and use tax on their sales and from the payment of use tax on the purchase of inventory for resale.

As a result of the passing of Hurricane María through Puerto Rico on September 27, 2017, the Puerto Rico Treasury Department (“PRTD”) announced the postponement of various tax filing and payment due dates during the months of September and October 2017. Informative Bulletin 17-25 (“IB 17-25”) specifies the new due dates for some tax returns and/or payment of taxes.

During the past few weeks the Puerto Rico Treasury Department has issued new guidelines on due dates after the passage of hurricane María.

The Puerto Rico Treasury Department issued Administrative Determination 17-09 temporarily allowing the acquisition of prepared food to be exempt from the payment of SUT.

Understanding the complexity of Puerto Rico Sales and Use Tax (“SUT”) is a great challenge for most merchants. During the past years there have been changes that significantly affected the Puerto Rico SUT. To provide basic guidance and understanding this top 10 SUT tips will help your business comply.

Act 42-2017, was enacted on July 9, 2017 to establish the statutory framework applicable to the Medical Cannabis industry. To provide guidance on the provisions of the sales and use tax (SUT) as they relate to this industry, the Puerto Rico Treasury Department issued Administrative Determination 17-0 (DA 17-0) on July 20, 2017.

Puerto Rico Treasury Department released Administrative Determination (“AD 17-04”) to further explain the changes that were introduced to the Puerto Rico Internal Revenue Code with the approval of Act 25-2017.

The 2011 Puerto Rico Internal Revenue Code (the “Code”) has been amended to expand the concept of “nexus” for sales and use tax purposes as it relates to out-of-state sellers who lack physical presence in Puerto Rico, but sell tangible property to persons within the island.