On 5 May 2016, legislation to repeal Puerto Rico's new value added tax (VAT) regime was reportedly passed in the Senate. The legislation was passed in the House of Representatives on 2 May 2016. Puerto Rico's Governor Alejandro Garcia Padilla has already stated he intends to veto the legislation, although this may be overridden with a two-thirds majority in each house of the Legislative Assembly.
The new VAT regime was approved in May 2015 as part of Act 72-2015 (previous coverage), and is to replace the sales and use tax effective 1 June 2016. Details of how the repeal will be made effective will be published if the president chooses not to veto, or the veto is ultimately overridden.
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