Puerto Rico: Transition rules for VAT | KPMG | BE

Puerto Rico: Transition rules for VAT

Puerto Rico: Transition rules for VAT

The Puerto Rico Treasury Department issued guidance—an “administrative determination”—that sets forth transition rules concerning the introduction of the value added tax (VAT) regime on April 1, 2016.


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Administrative Determination 16-01 (February 25, 2016) provides the VAT transitional rules. The VAT will replace Puerto Rico’s existing sales and use tax regime. This change, however, will not affect the municipal sales and use tax (imposed at 1%) which will remain in effect with the VAT regime.


Read a March 2016 report [PDF 63 KB] prepared by KPMG LLP: Puerto Rico Releases Transitional Rules for the Introduction of VAT

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