Puerto Rico May Have Enacted another Sales Tax Holiday

News from Puerto Rico seems to indicate that as result of the devastation created by Hurricane Maria, the Treasury Department of the island (Hacienda) has issued a four-day sales tax holiday for prepared food. This sales tax holiday is would be starting Thursday September 21, and would end Sunday, September 24 2017. This information has not been confirmed through official channels as the Treasury Department website is down and communication with the island is very poor. If this information is correct, that will mean that the following types of transactions will be considered exempt from both the state and the city level sales taxes:

  • Food sold by restaurants and other businesses selling food ready for immediate consumption inside or outside of their premises;
  • Heated food sold by vending machines.
Author

Ramon Frias

Ramon is a Tax Counsel on the Regulatory Analysis team at Sovos. He is licensed to practice law in the Dominican Republic and is a member of the Dominican Bar Association. He has a Certificate Degree from Harvard University as well as a J.D. from the Universidad Autonoma de Santo Domingo. Ramon has written a number of essays about tax administration and has won the first prize in the international essays contest sponsored by the Inter American Center of Tax Administrations (CIAT). Prior to joining Sovos, Ramon worked for more than 10 years in the Department of Revenue of the Dominican Republic where he served as Deputy Director. He is proficient in French and Spanish.
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