The Governor of Puerto Rico has signed into law a bill (PC 1133) that changes the frequency of sales tax remittance. As reported earlier in this forum, the new rule requires most taxpayers to pay sales tax in the same month as it’s collected, in two monthly installments:
- The first payment is required on the 15th – for sales that take place between the 1st and the 14th day of the month
- The second payment is required on the last day of the month – for sales that take place between the 14^th^ and end-of-month.
The legislation also provides that taxpayers will be considered compliant if they pay at least 80% of the sales tax due during the relevant period OR if they pay 70% of the sales tax paid during the same month of the previous year.
The legislation does not clarify how local tax will be remitted under these new rules.
Under the new law, the filing rules do not change. The standard monthly tax return (Form SC 2915) remains due on the 20^th^ of the month.
Technically, the law carries a July 1 effective date but we fully expect that the Puerto Rico Department of Revenue to issue guidance explaining a compliance timeline. When that happens, Sovos will report it here.
