The Governor of Puerto Rico recently announced a proposal that would overhaul multiple components of the island’s tax system, including sales tax. Specifically, the Governor suggests….
- Prepared foods be taxed at a special rate of 7% as opposed to the standard rate of 11.5%.
- A reduction of the special rate applicable to Business to Business services 4% to 3% in 2019 and its total elimination in 2020.
The Puerto Rico legislature is also considering an exemption of feminine hygiene products as well as possible new sales tax holiday to support hurricane preparedness from May 25 until June 1. Eligible items would include items such as flashlights, batteries, bolts, nails, candles, propane, portable stoves, first aid kits, and canned food.
More information can be found here.