Treasury Department Circular Letter 15-12

Here you will find the Circular Letter 15-12 published by the Puerto Rico Treasury Department on August 17, 2015. This letter provides guidance to be followed by certain professionals as part of the introduction of the 4% sales and use tax on services rendered pursuant to Act 72 of May 29, 2015. As we stated in our previous communication dated June 4, 2015, beginning on October 1st, 2015, the exclusion of the “designated professional services” and “services rendered to a person in a business-related activity” commonly referred to as the Business to Business exclusion, is no longer in effect and in general, these transactions shall be subject to a 4% sales and use tax.

Specifically, this letter addresses that those merchants which provide “Designated Professional Services”, as defined in the PR Code and in this letter (i.e. CPA, Lawyers, Engineers, among others). These merchants shall modify their current Sales and Use Tax Merchant’s Registry following the guidelines set forth in this letter to update it and be in the position to collect the tax on October 1st, 2015.

To those that these changes apply, feel to contact us at your convenience.

Here is a copy of the document: Circular Letter 15-12