Puerto Rico launches VAT April 2016
- 20 January 2016 | Richard Asquith
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%.