This blog was last updated on October 15, 2026
Quick answer: Puerto Rico generally applies an 11.5% combined IVU rate to taxable sales, consisting of a 10.5% commonwealth rate and a 1% municipal rate. A separate 4% rate applies to certain services between merchants and designated professional services. Taxability, exemptions and filing obligations depend on the transaction and the merchant’s facts.
What is Puerto Rico sales tax?
Puerto Rico imposes a sales and use tax known as Impuesto sobre Ventas y Uso, or IVU. It applies to many sales of tangible personal property and taxable services, as well as certain uses of taxable items in Puerto Rico when tax was not collected at the time of purchase.
Puerto Rico IVU Rates
| Category | Typical rate | What to know |
| General taxable sales | 11.5% | Generally combines the 10.5% commonwealth IVU and 1% municipal IVU. |
| Certain business-to-business and designated professional services | 4% | A special rate may apply when the statutory requirements are met. |
| Exempt or excluded transactions | 0% | An exemption, exclusion or special treatment must be supported by the applicable rules and documentation. |
What is taxable in Puerto Rico?
IVU generally applies to taxable retail sales of tangible personal property and to services included within Puerto Rico’s taxable-services rules. Common examples can include:
- Clothing and other general merchandise
- Prewritten computer software and certain digital or electronically delivered products
- Telecommunications services
- Certain installation, repair and maintenance services
- Other taxable services, depending on the nature of the transaction and any available exemption
Because Puerto Rico’s rules contain product-specific and service-specific definitions, businesses should classify each offering based on its facts rather than relying on a broad product category alone.
Puerto Rico Sales Tax Nexus
A business may be required to register, collect and remit IVU when it is considered a merchant doing business in Puerto Rico. A collection obligation can arise from physical activity in Puerto Rico or from rules that apply to remote sellers.
Physical presence
Physical presence can include a place of business, inventory, employees, representatives or other in-territory activities. The analysis depends on the business’s specific facts and the statutory definition of a merchant.
Remote sellers and economic activity
Puerto Rico has rules addressing remote sellers and marketplace activity. Businesses selling into Puerto Rico should review the current merchant-registration and remote-seller guidance from the Puerto Rico Department of the Treasury before using a numerical threshold as the sole basis for a registration decision.
Puerto Rico Sales Tax Exemptions
Puerto Rico provides exemptions and exclusions for qualifying transactions. Availability may depend on the product or service, the purchaser, the seller, the intended use and the required documentation. Examples may include:
- Qualifying food and food ingredients
- Prescription medicines and qualifying medical items
- Certain agricultural inputs and equipment
- Qualifying educational goods or services
- Certain sales to government entities or qualifying exempt organizations
- Qualifying manufacturing or production purchases
- Sales for resale supported by valid documentation
An exemption should not be applied solely because a customer or product falls within a general category. Merchants should retain the certificate or other documentation required for the specific exemption.
How to Document an Exemption
The purchaser generally provides the seller with the applicable exemption or resale documentation. Puerto Rico uses different certificates for different exemption claims, so merchants should confirm that the form matches the transaction, is complete and remains valid for the period in which it is accepted.
For current forms, visit the Puerto Rico Department of the Treasury forms page
How to Register for Puerto Rico IVU
Businesses that must collect IVU generally register as merchants through the Department of the Treasury’s Unified Internal Revenue System, known as SURI. Registration results in a Merchant’s Registration Certificate (Certificado de Registro de Comerciante) for the registered activity and location, as applicable.
Start with the SURI portal and the Treasury’s current merchant-registration instructions.
Filing and paying Puerto Rico IVU
Puerto Rico IVU returns and payments are generally handled electronically. Commonwealth-level filing is administered through SURI. Municipal IVU administration may involve COFIM or a municipality that administers its own requirements. Businesses should confirm the portal, return and payment process that applies to each registered location.
- Maintain transaction-level records that distinguish taxable, exempt and reduced-rate sales.
- Reconcile collected tax to the applicable commonwealth and municipal liabilities.
- File the required return even when a filing period has no tax due, if the account requires a zero return.
- Use the filing frequency and due date assigned to the merchant’s account.
Relevant portals: SURI and COFIM
Shipping and Delivery Charges
The IVU treatment of shipping, delivery and handling charges can depend on how the charge is stated and on the taxability of the underlying sale. Businesses should review the full transaction rather than applying one rule to every freight charge.
Sales tax holidays
Puerto Rico may authorize temporary IVU exemptions for specified products and periods. Eligible items, price limits and dates are established in the guidance for each event. Merchants should use the Department of the Treasury’s current publication for the applicable holiday rather than relying on a prior-year calendar.
Frequently asked questions
What is the general sales tax rate in Puerto Rico?
The general combined IVU rate is typically 11.5%, consisting of a 10.5% commonwealth rate and a 1% municipal rate.
Does Puerto Rico tax services?
Many services may be taxable, while certain business-to-business and designated professional services may be subject to a 4% rate. Exemptions and exclusions can apply based on the service and the parties to the transaction.
How do businesses register for Puerto Rico sales tax?
Merchants generally register electronically through SURI and obtain a Merchant’s Registration Certificate for the applicable business activity and location.
Where are Puerto Rico IVU returns filed?
Commonwealth IVU returns are generally filed through SURI. Municipal obligations may be administered through COFIM or directly by a municipality, depending on the jurisdiction.
Is Puerto Rico part of Streamlined Sales Tax?
No. Puerto Rico is not a member of the Streamlined Sales and Use Tax Agreement, so the SST registration system and Simplified Electronic Return do not apply.
Official resources
Important disclaimer: This content is for general informational purposes only and does not constitute legal or tax advice. Requirements can change, and the correct treatment depends on the facts of each transaction. Consult current Puerto Rico Department of the Treasury guidance and qualified advisers for your circumstances.