Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 10.5% | 4% & 7% | Exempted |
The local name for VAT in Puerto Rico is HERE.
There are basically 4 VAT rates in Puerto Rico:
- Standard VAT rate is 10.5%
- The 10.5% is the State Tax and is increased by a 1% Municiapl Tax
- Reduced VAT rates are 4% & 7%
Recent developments
For more information about (recent) rate change developments in Puerto Rico, please click HERE.
Standard rate: 10.5%
This rate applies for all transactions that take place in Puerto Rico, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Reduced rate: 4%
- B2B Services
- Professional services
Reduced rate: 7%
- Prepared food
Exempted
- Certain food items
- Funeral services
- Prescription medicines
- Machinery and equipment used in exempt manufacturing operations
- Medical-surgical material
- Childcare centers
- Commercial and residential real property leases
- Printed and electronic books
- Feminine personal hygiene
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on November 4, 2021.
See also Global VAT/GST rate overview
