Tax rate by region Puerto Rico

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Puerto Rico operates a unified Sales and Use Tax (IVU) framework carrying an aggregate standard rate of 11.5%, which combines a 10.5% state-level levy with a 1% municipal component. Under expanded tax rules, physical and digital goods—including software as a service (SaaS), digital streaming, and cloud subscriptions—are fully taxable once a non-resident merchant establishes an economic nexus by surpassing USD 100,000 in gross annual sales or 200 separate transactions. All compliance obligations are strictly digital, requiring registered merchants to submit their monthly IVU returns via the SURI online portal by the 20th day of the following month.

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Puerto Rico

Puerto Rico levies a Sales and Use Tax (IVU — Impuesto sobre Ventas y Uso), administered by the Departamento de Hacienda. The IVU has two components — Sales Tax (paid by purchasers) and Use Tax. 

Official government link: Departamento de Hacienda Purto Rico

11.50%

E-products and services VAT/Sales tax rate

4.00%

Reduced tax rate

Reduced tax rate product categories

B2B services and professional services

Tax applicable for

B2B and B2C

Reverse charge mechanism for B2B sales

No

Tax ID validation required

Resale and exemption certificates accepted

When do you have to register

After $100,000 in annual gross sales or 200 separate transactions

Online registration possible

Yes 

Local representative needed

Not mandatory

Registration procedure

Register as a merchant via SURI online portal; obtain Merchant Registration Certificate

List of digital and electronic services liable for tax

Digital products and services

Penalties

Late filing: 10% per month (max 25%);

failure to pay: 5% per month (max 25%);

interest 10% annual

Registration threshold

USD 100.000 in gross receipts OR 200 separate transactions per year

Filing interval

Monthly

Filing deadline

20th day of the month following the reporting period

E-invoicing requirements

Yes

Record keeping

6 years 

How-To Guides: Puerto Rico SaaS VAT

Step: 1 Threshold

On December 8, 2020, the Puerto Rico Treasury Department published new sales tax regulations implementing the law requiring marketplace facilitators to collect and remit sales tax.

 

In April 2020, Puerto Rico enacted Act 40-2020, which imposed sales and use tax collection requirements on marketplace facilitators that facilitate sales to customers in Puerto Rico. According to the regulations, marketplace facilitators are considered withholding agents for “mail-order sales” to Puerto Rico residents.

 

The term “mail-order sales” is defined to include the sale of tangible personal property, specific digital products, or enumerated taxable services. “Specific digital products” means electronically transferred digital audiovisual works, digital audio works, or other digital products, provided that a digital code that grants a digital buyer the right to obtain a product will be treated as a sale of a product. “Other digital products” includes greeting cards, images, video or electronic games or entertainment, group memberships to obtain exclusive electronic or audiovisual data, and any other product that could be considered a digital product.

 

Marketplace facilitators without a physical location in Puerto Rico but making mail-order sales in excess of $100,000 or at least 200 transactions in their business year or annual accounting period will be deemed to have economic nexus with Puerto Rico.

 

The marketplace facilitator tax collection requirements under Act 40-2020 took effect retroactively to January 1, 2020, and marketplace facilitators with nexus will be subject to penalties if they fail to register as merchants with the Department. The regulations specify, however, that the PRTD will not impose penalties on marketplace facilitators if they register on or before December 31, 2020.

 

The threshold is $100,000 in gross sales OR 200 separate transactions in the current or preceding calendar year.

 

Registration is mandatory for remote sellers meeting this economic nexus threshold.

Step: 2 Business Registration

Register online via SURI (Sistema Unificado de Rentas Internas). You must register as a “Merchant” to obtain the certification to collect tax.

Step: 3 TIN/VAT Number

Upon registration, businesses shall receive:

 

  • Merchant Registration Number (sales tax ID for IVU purposes).
  • Format: 7-digit number usually displayed on the certificate.

Step: 1 Standard Rate

Standard VAT (IVA) in Puerto Rico is 11.5% (Standard IVU Rate).

 

Breakdown: 10.5% State + 1% Municipal.

Step: 2 Rate Formula

To calculate your tax amounts, use the following formula:

 

Tax Amount = Net Price x 11.5 %

 

Step: 3 Reverse Charge (B2B)

There is no traditional Reverse Charge.

 

Puerto Rico treats SaaS as “Tangible Personal Property” (TPP).

 

Foreign sellers with nexus must charge the 11.5% tax unless the buyer provides a valid exemption certificate (e.g., Reseller Certificate).

Step: 1 Selling B2C

Charge 11.5% IVU (Sales & Use Tax) on digital goods and SaaS sold to Puerto Rican consumers.

Step: 2 Selling B2B

• Standard Rule: Charge 11.5% IVU. (SaaS is often classified as TPP, not a “service,” so the special 4% B2B service rate rarely applies to standard SaaS).

• Exemption: Do not charge tax ONLY if the buyer provides a valid Certificate of Exemption (e.g., for resale or manufacturing). Keep this certificate on file.

Step: 3 Invoice Requirements

Invoices must generally include:

 

• Supplier Name & Merchant Registration Number
• Date of Sale
• Description of Items
• Sale Price
• Explicit Tax Amount (Separately stated as IVU State 10.5% and IVU Municipal 1%)

Step: 1 Filing Interval

Taxes are expected to be filed monthly.

Step: 2 Filing Deadline

The filing deadline is by the 20th day of the month following the transaction period (e.g., file January return by February 20).

Step: 3 Submission

File the Monthly Sales and Use Tax Return (Form SC 2915) electronically via SURI.

Step: 4 Record Keeping

Records must be kept for 6 years.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Puerto Rico’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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