10 January 2018 Puerto Rico ends sales tax exemption on prepared food In Administrative Determination (AD) 18-01, Puerto Rico's Treasury Department (PRTD) announced that the sales tax exemption for prepared food ended on January 7, 2018. In AD 17-12, the PRTD exempted prepared food from the payment of sales tax until September 24, 2017, as a result of Hurricane Maria. AD 17-13 extended the exemption to October 8, 2017 and AD 17-17 extended the exemption until further notice. Under AD 18-01, the sales tax exemption for prepared food in effect under AD 17-12 and then extended under ADs 17-13 and 17-17 will no longer apply as of January 8, 2018. The last day the exemption applied is January 7, 2018. Commencing on January 8, 2018, merchants that are withholding agents will need to make sure that their systems are properly set up to collect sales tax on the sale of prepared food. Document ID: 2018-0059 |
