Puerto Rico's Legislative Assembly Passes Legislation to Repeal New VAT Regime

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 ({News-2015-06-03/A/2- previo…