Misuse of fiscal terminals in Puerto Rico

On November 26, 2019 the Puerto Rico Treasury Department (“PRTD“) issued Administrative Determination 19-07 to inform the taxpayers that penalty under Section 6043.06(c) of the Puerto Rico Internal Revenue Code (” the Code”) related to the installation and misuse of the fiscal terminals, may be imposed electronically through SURI or in person by an Internal Revenue agent when they identify that the merchant:

a. does not have a fiscal terminal installed at one or more points of sale  when it is required;

b. has a fiscal terminal but is not transmitting the information to the Department or is not transmitting the information correctly.

c. does not allow or obstructs the inspection of points of sale and fiscal terminals installed at the location

d. turns off the terminal, mutilates, damages, destroys, modifies or alters the fiscal terminals.

When the PRTD determines that the merchant is in breach of the installation, maintenance, and use of the fiscal terminals, according to the Code and the regulations in force, the Treasury will impose a penalty according to the number of infractions committed by the merchant, as detailed below:

• First infraction $ 500
• Second violation $ 2,000
• Third infraction $ 9,000, or
• Fourth infraction $ 20,000

The PRTD will determine the number of infractions based on the information available in their information systems.  Administrative Determination 19-07 will be effective immediately.

Please contact our Tax Department should you require additional information regarding this or any other tax issue.  We will be glad to assist you.