How vat / sales tax works in Puerto Rico
Puerto Rico IVU defaults to 11.5% on goods and services, combining 10.5% Commonwealth and 1% municipal rates, with 4% on designated B2B and professional services.
Merchants register through SURI, file monthly returns by the 20th, and collect on SaaS and digital goods treated as taxable.
Unprocessed groceries and prescription medicines exempt, remote sellers face USD 100,000 or 200-transaction nexus, and reseller certificates manage inventory flows.
Tax rates at a glance
- Standard VAT
- 11.5%
- B2B services
- 4%
- Groceries and medicines
- Exempt
- Nexus line
- USD 100,000
- Filing rhythm
- Monthly
- SaaS treatment
- Taxable
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersSaaS foundersFreelancersExpatsCross-border traders
Watch out for
- SaaS and digital goods are fully taxable at 11.5%, which surprises vendors modelling stateside digital exemptions.
- Reseller certificates need SURI issuance before inventory moves, or IVU embeds irrecoverably in stock cost.
- Municipal 1% follows every transaction, so Commonwealth-only math under-collects systematically.
- Act 60 incentives never touch IVU mechanics, which run on separate tracks with separate filings.
Frequently asked questions
What is the sales tax rate in Puerto Rico?
Puerto Rico applies 11.5% combined IVU in 2026, with 4% on designated B2B services and exemptions for groceries and medicines.
When do remote sellers collect Puerto Rico IVU?
Past USD 100,000 in sales or 200 transactions yearly, with SURI registration at least 30 days before taxable sales.
Is SaaS taxable in Puerto Rico?
Yes at the full 11.5%, treated as taxable tangible property with monthly SURI filing.