Puerto Rico Sales Tax Guide: IVU Rates, Exemptions, and Nexus

• Puerto Rico generally imposes an 11.5% IVU sales and use tax on taxable sales: 10.5% commonwealth plus 1% municipal.
• A separate 4% rate can apply to certain business-to-business transactions and designated professional services if statutory requirements are met.
• IVU applies to taxable retail sales of tangible personal property and certain taxable services, including items such as clothing, software/digital products, telecom, and some installation, repair, and maintenance services.
• Businesses may have IVU registration and collection obligations based on physical presence or remote-seller rules; merchants should evaluate current Puerto Rico Treasury guidance.
• Exemptions/exclusions may apply for items such as qualifying food, prescription medicines, medical items, certain educational, agricultural, government, manufacturing, and resale transactions, but they require proper factual support and documentation.

Source: sovos.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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