On 7 March 2016, Puerto Rico's Treasury Department issued a press release announcing that the change from sales and use tax (SUT) to value added tax (VAT) will be made effective 1 June 2016 instead of 1 April 2016 as originally planned. The delay is meant to provide businesses more time to prepare and ensure that the change goes as smoothly as possible. Additional guidance was issued the following day.
The final change to VAT at the rate of 10.5% will end an 11-month transition that began wi…