The DMA Way

Completely Compliance- Puerto Rico Sales Tax Deposits Enacted

by DMA Staff | Sep 28, 2017

Act 46-2017 was signed by Governor Padilla on July 19 which will require bi-weekly payments for certain businesses. These applicable businesses are classified in two different ways: large taxpayers, or businesses whose gross receipts exceed $50 million, and other taxpayers whose monthly volume of sales tax in the previous calendar year exceeds $2,000. The sales tax applies to both tangible personal property sold at the 10.5% state rate or services sold at the 4% rate.

Large taxpayers are subject to the payments even if they do not submit $2,000 in tax in the previous year. One threshold does not cancel out the other.

The payments are due on the 15th of the month and at the end of the month. If your business is subject to the bi-weekly payments, there are two calculation methods.

  1. 80% of the sales tax determined for the prepay period - For example, in October, for sales tax collected between the 1st and 14th, 80% of said tax must be remitted on the 15th, and again for the second payment to equal 80% of the tax collected from the 15th to the 30th paid at the end of the month.
  2. 70% of the sales tax collected for the same month in the previous year - It equates to 35% being remitted on the 15th and the remaining 35% remitted at the end of the month.

The effective dates for large taxpayers was August 1, 2017, while other taxpayers were effective September 1, 2017.