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Puerto Rico e-services VAT

  • Aug 15, 2017 | Richard Asquith

Puerto Rico e-services VAT

Puerto Rico is considering introducing 15% VAT on the provision of electronic services, including streaming/downloads of games, music etc, e-books, online software, apps and member websites.  This would include foreign providers of such services, including iTunes, Google Play, Netflix, HBO and Spotify.

Puerto Rico has struggled to manage its state deficit, and has attempted to replace its existing 13% sales tax with VAT for a number of years.

In addition, the country may extend its consumption tax net to include legal and private health services.

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.