Guide to sales tax compliance in Puerto Rico
by July 1, 2024
While Puerto Rico is considered an unincorporated US territory rather than a state, many of the same state sales tax considerations are applicable. Effective January 1, 2021, Puerto Rico expanded sales tax requirements to include remote sellers and marketplace facilitators.
Here’s a guide to sales tax compliance in Puerto Rico, including an overview of their economic nexus requirements, the Puerto Rico sales tax rate, and how to register for a sales tax permit.
Do you need to collect sales tax in Puerto Rico?
You are required to collect sales tax in Puerto Rico if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in Puerto Rico to merit paying sales tax in that state. Economic nexus means passing a states’ economic threshold for total revenue or the number of transactions in that state.
Do you have physical nexus in Puerto Rico?
Puerto Rico considers a seller to have physical nexus if you have any of the following in Puerto Rico:
- An office or place of business such as a retail store
- A warehouse or inventory stored in the state
- Independent contractors working on behalf of the company located in Puerto Rico, that are generating sales for the business and the gross income attributable to the contractors is more than $10,000 in the last 12 months.
- Click-through nexus
Do you have economic nexus in Puerto Rico?
Effective January 1, 2021, Puerto Rico considers vendors who make more than $100,000 in sales or have 200 sales transactions during the seller’s accounting year (calendar year) in Puerto Rico to have economic nexus. Businesses that meet these requirements are required to register for a sales tax permit and collect sales tax from customers in Puerto Rico.
What is the Puerto Rico sales tax rate?
The sales tax rate in Puerto Rico is 11.5% (10.5% at the commonwealth level and 1% at the municipality level).
Is what you’re selling taxable?
If you discover you have sales tax nexus in Puerto Rico, your next step is to determine if what you’re selling is taxable.
Tangible personal property is generally taxable in Puerto Rico, with a few exceptions for items used in agriculture or industry. Digital products are also considered taxable. Services in Puerto Rico are generally not taxable, unless explicitly listed in the tax code.
If you have sales tax nexus in Puerto Rico and your products are taxable, your next step is to register for a sales tax permit.
How to get a sales tax permit in Puerto Rico
Visit Puerto Rico’s Sistem Uificado De Rentas Internas (SURI) website to register online. The website is in Spanish, but you will have an option to switch to English if necessary.
To register at the SURI website you’ll need the following information:
- EIN or SSN
- Legal name
- DBA name (if applicable)
- Email address
- Contact phone
- Physical address
- Mailing address
- Incorporation date
- Closing date of accounting period
- Start date
- Projected business volume
- NAICS Code(s)
It’s free to apply for a sales tax permit, but other business registration fees may apply.
We recommend speaking with a vetted sales tax expert before registering for a Puerto Rico sales tax permit if you don’t already pay Puerto Rico income tax.
TaxJar can register for a sales tax permit in Puerto Rico on your behalf. Visit our registration page to get started.
How to file and pay sales tax in Puerto Rico
The Puerto Rico Department of Treasury requires that sellers file territory sales tax online, through the SURI online portal.
Additionally, sellers must create a Municipal Finance Corporation (COFIM) online portal account in order to file and pay municipal tax. Sellers registered with SURI must use the same username and password to log into the COFIM portal.
How to manage your sales tax compliance in Puerto Rico with TaxJar
If you have sales tax requirements in Puerto Rico, our system will compile sales tax reports for your Puerto Rico sales.
If you are using the TaxJar API (or an integration that uses the TaxJar API), we provide sales tax calculations for orders shipped to Puerto Rico as long as you have calculations enabled in your state nexus settings.
While TaxJar does not offer AutoFile services for Puerto Rico, our return ready reports make it easy to file and remit sales tax in Puerto Rico. Ready to get started? Try our free, 30-day TaxJar trial today.
