Puerto Rico

Puerto Rico (PR) is not a state but a commonwealth and an unincorporated territory of the United States. The commonwealth sales and use tax rate is 5.5%. Municipal governments also levy a 1.5% municipal sales and use tax.

Like many states, the Commonwealth of Puerto Rico exempts from sales tax non-prepared food, healthcare services, and prescription medications. Business-to-business (B2B) services have traditionally been exempt from sales tax, as well. However, with the enactment of the Tax Burden Adjustment and Redistribution Act on August 1, 2013, many B2B services are subject to sales tax in Puerto Rico.

Puerto Rico’s combined sales and use tax rate is currently 7%.

Puerto Rico is located in the Caribbean, just west of the British Virgin Islands and just east of the Dominican Republic and Haiti. It is approximately 100 southeast of Miami, Florida.

Avalara Sales and Use Tax Products for Puerto Rico

AvaTax – AvaTax is a powerful, online sales tax compliance solution that provides all businesses with a level of sales tax automation that until now has been available only to Fortune 500 companies. AvaTax’s transaction-based service model and seamless integration into business applications gives you rapid access to all jurisdiction assignments and real-time sales tax calculations. Cutting-edge technologies and superior processing logic can manage even the most complicated tax issues, such as situs, nexus, tax tiers, tax holidays, exemptions, certificate management and product taxability rules.

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