On Friday 20 May 2016, we reported on Governor Alejandro Garcia Padilla’s veto of the Legislature’s repeal of Puerto Rico’s Value Added Tax. The House of Representatives has wasted little time and today has voted to override Governor Padilla’s veto. The Speaker of the House of Representatives recalled the vote, “Today with 47 votes we have approved the override of the Governor’s Veto on the B2B project. Now it goes to the senate.”
The Senate is reportedly scheduled to vote on the repeal later this week. Should the Senate successfully override Governor Padilla’s veto, VAT will be repealed and the current 10.5% Sales and Use Tax and 4% reduced B2B tax will continue. The legislative session is scheduled to end 30 June 2016. The Puerto Rico Legislature maintains a timeline of the bill and its procedural history on its website.