Further Clarity of Pending Puerto Rico Sales Tax Legislation

Charles Maniace
July 5, 2017

As reported earlier on this forum, Puerto Rico is considering 2017-2018 budget legislation that may significantly impact remittance requirements for existing taxpayers in the immediate future. Specifically the bill which is currently sitting on the Governor’s desk, would require taxpayers whose average sales tax liability is at least $2000 per month (or who otherwise qualify as a large taxpayer), to pay sales tax in the same month as its collected, in two monthly installments:

  • The first payment, for sales between the 1st and 14th days of the month will be due by the 15th of the same month

  • The second payment, for sales between the 15th and last day of the month should be paid by the last day of the 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.


From our analysis, it appears that the new law does not modify the articles of the tax code relating to filing the monthly return. From what we can see, the return (Form SC 2915) remains due on the 20th of each month.


At this point, it remains unclear if the twice monthly remittance approach will also apply to local taxes. It also remains unclear when this requirement will first be enforced. While the bill contains a July 1 effective date, we are monitoring the situation for any guidance issued by the Hacienda that may delay enforcement.


Further, it appears the measure that would have changed the “business to business” sales tax rate from 4% to 2% was removed from the bill prior to reaching the Governor’s desk.


Sovos will be monitoring the situation in Puerto Rico closely and will provide continued updates through this forum.


The post Further Clarity of Pending Puerto Rico Sales Tax Legislation appeared first on Sovos.

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Charles Maniace

Chuck is Vice President –Regulatory Analysis & Design at Sovos, a global provider of software that safeguards businesses from the burden and risk of modern tax. An attorney by trade, he leads a team of attorneys and tax professionals that provide the tax and regulatory content that keeps Sovos customers continually compliant. Over his 20-year career in tax and regulatory automation, he has provided analysis to the Wall Street Journal, NBC, Bloomberg and more. Chuck has also been named to the Accounting Today list of Top 100 Most Influential People four times.
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