Sales and Use Taxes (SUT)
A Sale and Use Tax of eleven and a half percent (11.5%) (SUT) applies on sales of tangible personal property, taxable services, admission rights and combined transactions, subject to certain exclusions and exemptions. Designated professional services and business-to-business services (B2B) are subject to a SUT of four percent (4%).
A merchant is required to collect said tax as a withholding agent responsible for the payment of the Sales and Use Tax. He is also required to file a Monthly Sales and Use Tax Return, no later than the twentieth (20th) day of the following month in which the taxes were collected or in which the transaction subject to the tax took place.
Self-imposed IVU (reverse charge)
Applicable IVU will be Self-imposed by the business in Puerto Rico who receives the services from a non-resident or entity not engaged in trade or business in Puerto Rico, and is responsible for sending the IVU payment to the Treasury Department with the Monthly Sale and Use Tax Return applicable to Services on or before the 20th of the next month following of making the payment or receiving the services. Otherwise, you cannot claim the deduction as an expenditure for those services in the Income Tax Return.
Importers of tangible personal property and Use Taxes
Every person who imports tangible personal property by any means, including postal service or air carrier, subject to the use tax, must file a USE TAX RETURN ON IMPORTS by the tenth (10th) day of the month following the month in which the transaction subject to the tax takes place. The filing must be made electronically through the PICO (Merchant Integrated Site) system. This requirement does not apply to the municipal sales and use tax.
It is important that every business which imports and files declarations as part of the process for taking possession of the merchandise, must be registered in PICO (Merchant Integrated Site) system. To register with PICO, you must visit PRTD web page www.hacienda.gobierno.pr and is required to have an email address to create a personal user account.