Puerto Rico Treasury Issues Administrative Determination on the Application of Reduced Sales, Use Tax Rates

The Puerto Rican Department of Treasury Oct. 23 issued an administrative determination clarifying the application of the reduced 7 percent sales and use tax (IVU) to the sale of prepared foods by restaurants. The determination clarified the application of the reduced rate for: 1) combined transactions of prepared food and alcoholic beverages; 2) transactions involving a restaurant’s sale of prepared foods for take away (“to-go”); and 3) transactions from a commercial business that also sells prepared food. The determination is applicable to transactions beginning Nov. 1. [Puerto Rico, Department of Treasury, 10/23/19]

Reference:
View Administrative Determination No. 19-06. View ...