Puerto Rico - Reminder of tax law changes, procedures affecting importers 

April 28:  The Legislative Assembly of Puerto Rico passed several bills making changes to the Puerto Rico tax law—i.e., the Internal Revenue Code of 2011, as amended—and the sales and use tax statutes.
  • The first of these bills was Act 40 of 2013, signed into law on June 30, 2013. Act 40-2013 expanded the imposition of tax on business-to-business transactions and eliminated the sale for resale exemption, requiring resellers to claim a credit on their sales tax return to recover tax paid on otherwise exempt sales. Read TaxNewsFlash-United States [PDF 82 KB]

  • Two subsequent bills, Act 46 of 2013 and Act 117 of 2013 made further changes in the use tax affecting merchant-importers doing business in Puerto Rico. These acts impose an upfront obligation to pay use tax on most imports to Puerto Rico before possession can be taken of the import.

Additionally, on November 15, 2013, the Puerto Rico Treasury Department issued guidance required by Informative Bulletin 13-14 through Circular Letter 13-22 providing the procedures to be effective after November 30, 2013, regarding the use tax payment on imported tangible personal property to Puerto Rico as required by Acts 46 -2013 and Act 117-2013.

Read an April 2014 report [PDF 96 KB] prepared by KPMG LLP that describes provisions in the 2013 legislation and guidance affecting importers.

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