Puerto Rico Transitions to VAT
PUERTO RICO- In May, Puerto Rico Governor Alejandro Garcia Padilla signed into law bill PC 2484, increasing the sales tax rate from 7% to 11.5%. This will become effective July 1, 2015. It also introduced a new 4% tax on business and professional services that will become effective October 1, 2015. These increased taxes will help to offset the Commonwealth’s $72 billion public debt and facilitate the transition to a VAT (Value Added Tax) system on April 1, 2016. At that time there will be an 11.5% tax on purchases, transactions, and contracting of goods and services. Items such as education, medical services, food, raw materials, and leases will be exempt from the new tax.
About Davis & Davis LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis & Davis LLC – Sales Tax Experts specializes in sales/use tax audit consulting and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis & Davis we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.
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