08 March 2016 Puerto Rico's Treasury Department postpones VAT effective date Puerto Rico's Treasury Department (PRTD) has postponed the effective date of the value added tax (VAT) until June 1, 2016. As a result, the sales and use tax (SUT) will remain in effect until May 31, 2016. The special 4% SUT for services between merchants and designated professional services (also known as business to business) will remain in effect until May 31, 2016. Recent guidance issued under Administrative Determination 16-01 will likely be modified (covering areas such as the merchant registration and filing of returns). For more information, see Tax Alert 2016-410.) To the extent the 4% SUT will continue in place, the tax will be a cost of doing business and will not be recoverable (i.e., subject to credit).
Document ID: 2016-0470 | |||||||||||||||||||
