Sales and Use Tax Exemption Approved

March 23 2020

We continue to update you in addressing the challenges of the Coronavirus (COVID-19) to guide you as we all adapt, adjust and move forward.

The Puerto Rico Department of Treasury (PRTD) issued Administrative Determination 20-08 announcing a temporary exemption from the state and municipal Sales and Use Tax (SUT) applicable to prepared food.

The exemption period started on March 20, 2020, and will last until 11:59 p.m. Sunday, April 19, 2020. The temporary exemption is applicable to prepared food usually sold hot for consumption, specifically described as “prepared food usually sold hot and/or with utensils to be eaten by a natural person in Puerto Rico for its taste or nutrition value”.

The exemption will not apply to the sale of alcoholic beverages.

PRTD instructed merchants to report these exempt sales on their Monthly SUT Return as “Sale of Exempt Tangible Personal Property” (line number 16 of Form SC 2915).

Further, PRTD encourages all consumers to enforce the provisions of Administrative Determination 20-08. If a merchant, by act or omission, collects from a consumer the SUT on a sale of prepared food exempt from the payment of said tax under Administrative Determination 20-08, the merchant is required to immediately refund the amount of SUT collected.