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Puerto Rico cuts Sales Tax to 7%

  • Apr 3, 2018 | Richard Asquith

Puerto Rico cuts Sales Tax to 7%

Puerto Rico has announced on 2 April a new fiscal budget which includes plans to cut its Sales and Use Tax from 11.5% to 7%. The rate for professional services will be reduced to 3% from 4%.  There are also cuts to the corporate and personal income tax rates.

The consumption tax rate cut is being funded by the withdrawal of a number of tax incentives. No implementation date has been provided, and the changes need to be first voted on by US territory’s legislature.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.