Tax & Accounting Blog

Puerto Rico VAT: A Visual Chronology

Blog, Indirect Tax, ONESOURCE May 20, 2016

On 20 May 2016 Governor Alejandro Garcia Padilla has vetoed House Bills 2032, 2838, 2839, and 2840, the legislation repealing VAT. The legislature will most likely attempt to override this veto. Should the Legislature successfully override Governor Padilla’s veto, VAT will be repealed and the current 10.5% Sales and Use Tax and 4% reduced B2B tax will continue.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 governor’s veto message noted the implementation of the VAT could be one of the ways for Puerto Rico to address structural problems and generate tax revenue.

At the link below we have a timeline of the events so far:

Puerto Rico VAT