Sales Tax Articles
Sales Tax State Activity Update - September 2006
Puerto Rico Implements Sales and Use Tax
At the end of June, the Commonwealth of Puerto Rico approved the implementation of a Sales and Use Tax statute. Most of the information related to this new tax has been published in Spanish. English translations are becoming available as more businesses and firms explore the compliance requirements of the new statute.
The principal components of the new law include the following:The Commonwealth level Sales, Seller's Use and Consumers Use tax rate of 5.5 % goes into effect on November 15, 2006.
- Many local municipalities have already implemented the tax with rates ranging from 1 to 1.5 %.
- The act repeals the current excise tax on goods shipped into Puerto Rico
- Examples of taxable Goods and Services include tangible personal property; certain services, such as installation; admissions, over the counter medicines, leases; and certain telecommunication services.
- Examples of exempt Goods and Services include: medical services and prescription drugs; food for personal consumption; professional services, and some telecommunication services.
At this point, there is limited information available in English on the Puerto Rico Government website. However, a registration form is now available here.
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