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Puerto Rico launches VAT April 2016

  • VAT
  • 21 January 2016 | Richard Asquith

Puerto Rico launches VAT April 2016

Puerto Rico has reconfirmed that it will replace its existing Sales and Use Tax with Value Added Tax on 1 April 2016. However, details over processes and forms still remain casting doubt on this latest launch date.

The Puerto Rican tax authorities confirmed a phased launch of VAT, starting with a general regime covering liabilities, credits and payments. There will be a phasing in of other processes over the summer, including credit applications. However, there are no details on processes, rules, technical notes etc.

The switch from SUT to VAT had been scheduled for 2015 to help broaden the tax base and fund the large government debt. However, it failed to pass and the SUT rate was increased from 7% to 12.5%.


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 this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.