On 29 May 2015, the Governor of Puerto Rico, Alejandro García Padilla, signed into law Act 72-2015 (Act 72), which provides for the implementation of a value added tax (VAT) at a rate of up to 10.5%. The Act as passed follows the rejection by parliament of a previous bill for the implementation of VAT at a higher rate in April.

As part of a transition period, the current Central Sales and Use …