On 29 May 2015, the Governor of Puerto Rico, Alejandro García Padilla, signed into law Act 72-2015 (Act 72), which provides for the implementation of a value added tax (VAT) at a rate of up to 10.5%. The Act as passed follows the rejection by parliament of a previous bill for the implementation of VAT at a higher rate in April.
As part of a transition period, the current Central Sales and Use Tax (SUT) will be increased from 6% to 10.5% from 1 July 2015, and a 4% SUT on business-to-business …