October 5, 2022
Puerto Rico's Treasury Department extends sales tax exemption for prepared food because of Hurricane Fiona to October 13, 2022
In Administrative Determination 22-09, the Puerto Rico Treasury Department has extended the sales tax exemption for prepared food from October 6, 2022, to October 13, 2022. For details on the temporary exemption, see Tax Alert 2022-1438.
Merchants should report the sales in their monthly sales tax returns on the line for reporting sales of exempt tangible personal property. If a merchant collects sales tax on the sale of prepared food, the merchant should immediately reimburse the amount of the sales tax to the consumer.
The temporary sales tax exemption should apply to the 1% municipal sales and use tax (SUT) because the Puerto Rico Internal Revenue Code, as amended, provides that the municipal SUT is imposed in the same manner as the state-level SUT.