Acts 72, 101, 107 and 159 of 2015 provided changes to the Subtitle D of the PR Internal Revenue Code of 2011, as amended plus it added a new Subtitle DDD which included new sales and use tax rate applicable to services rendered by merchants and the infamous business-to-business (B2B) starting on July 1, 2015. In addition this changes also brought a new Subtitle DD that included a transition to the Impuesto de Valor Anadido (Added-Value Tax) (IVA).

However, this transition to an IVA has been halted until further notice through an act of the PR Legislative Assembly. This legislation process has an immediate effect.

Because of this, the PR Treasury Department, also known as Hacienda, has issued its Administrative Determination 16-10 (DA-16-10) to inform all taxpayers that all previous administrative determinations related to IVA are left without effect. The following previous determinations are eliminated:

  • DA-16-01
  • DA-16-04
  • DA-16-07
  • Informative Bulletin 16-11
  • Circular Letter 16-03

However, the following continues in effect:

  • Provisions of Subtitle D and DDD
  • IVU continues at a state rate of 10.5% and local/municipal rate of (1%)
  • Special tax of 4% applicable to services and designated professional services


The PR Treasury Department will soon have in place its new electronic system called Sistema Unificado de Rentas Internas (SURI). More on this topic once the Department provides additional information.

Article by:  Ivan G. Gonzalez, CPA, CFE – Assurance Manager at FSA



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