Puerto Rico Issues Requirements For special 7% Sales and Use Tax Rate for Prepared Foods

Puerto Rico's Treasury Department has issued Administrative Determination No. 19-03 of 2 August 2019, which sets out the requirements for the special 7% sales and use tax (IVU) rate for prepared foods introduced as part of Puerto Rico's tax reform approved in December 2018. The Administrative Determination includes that the 7% rate will apply from 1 October for qualified merchants that have obtained certification. To obtain certification, the following conditions must be met:

• The merchant m…