Puerto Rico Treasury Announces Temporary IVU Exemption for Designated Merchants, Professional Services Due to Coronavirus

The Puerto Rican Department of Treasury July 16 issued Circular Letter No. 20-33, establishing a temporary exemption from the 4 percent sales and use tax (IVU) on services provided between merchants and designated professional services invoiced during the months of April, May, and June due to the coronavirus pandemic. The circular also explains: 1) that the exemption can be extended for additional periods of 3 months each, but not beyond Dec. 31, 2021; 2) the accounting method for reporting income; 3) self-taxation rules for services received in Puerto Rico from nonresidents taxed at the 11.5 percent rate; 4) the filing ...