On 29 December 2015, Puerto Rico's Treasury Department issued Administrative Determination 15-26, which details a two-phased approach for the implementation of value added tax (VAT) in the country. A 10.5% VAT will replace Central Sales and Use tax (SUT) in Puerto Rico beginning 1 April 2016, although the 1% Municipal SUT will continue to apply.
From 1 April 2016 (phase one):
From 1 June 2016 (phase two):
In the event the Treasury Department is not ready for implementation, phase one may be delayed to 1 June 2015 as provided for under Act 72-2015, which is the legislation that includes the change to VAT (previous coverage).
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