Puerto Rico IVU Guide 2026

Puerto Rico IVU at a glance

Do I need to comply? — 60-second check

Your first taxable supply in Puerto Rico is the trigger — but with a critical structural distinction: Puerto Rico is a US Commonwealth, not a foreign country from a US-federal perspective, and not a US state from a state-tax perspective. IVU (Impuesto sobre Ventas y Uso) is Puerto Rico’s own consumption tax — 11.5% combined (10.5% Commonwealth + 1% Municipal) — operating under the Código de Rentas Internas de Puerto Rico, administered by Hacienda. The threshold for IVU collection obligation is generally USD 100,000 in annual gross sales (Small Merchant exemption below).

Four questions, in order:

• Puerto Rico-resident merchant? IVU collection obligation applies from commencement above the USD 100,000 / 200-transaction Small Merchant threshold. Local Puerto Rico Merchant track.
• Out-of-state remote seller (US mainland, foreign, or other origin) with substantial nexus to Puerto Rico? Remote Seller track. Post-Wayfair guidance establishes IVU collection obligations for remote sellers exceeding the USD 100,000 / 200-transaction threshold into Puerto Rico.
• Foreign business shipping physical goods to Puerto Rico consumers — your own store, Amazon, or other marketplaces? Foreign E-commerce Seller track. Use tax / Import IVU applies; Puerto Rico applies post-Wayfair remote-seller rules. Marketplace facilitators are responsible for collection on qualifying marketplace transactions.
• Foreign business importing goods into Puerto Rico for distribution, manufacturing, or onward sale — particularly considering Act 60 incentives? Foreign Importer / Act 60 Operator track. Use tax / Import IVU applies on customs value + applicable charges. Act 60 (Puerto Rico Incentives Code) offers materially preferential income-tax and other treatment for qualifying operations including export services, individual investor, and manufacturing categories.

Two contextual points. First: Puerto Rico’s status as a US Commonwealth produces a distinctive tax position. The Commonwealth operates its own income tax (separate from US federal income tax for most categories) and its own consumption tax (IVU). US federal employment taxes (Social Security, Medicare) generally apply; US federal income tax generally does not apply to Puerto Rico-source income of bona fide Puerto Rico residents and certain Puerto Rico operations. This produces complex but structurally significant planning opportunities and obligations. Second: Act 60 (consolidated under Ley 60-2019) is one of the most operationally significant business and individual incentives frameworks in the US-Commonwealth and Caribbean region — offering 4% income tax on qualifying export services, 0% capital gains on certain individual investor positions, and preferential treatment for qualifying manufacturing and other operations under specific compliance frameworks.

Quick-jump to your persona

• Out-of-State Remote Seller into Puerto Rico
• Foreign E-commerce Seller into Puerto Rico
• Foreign Importer / Act 60 Operator
• Local Puerto Rico Merchant

Out-of-State Remote Seller into Puerto Rico

Sell into Puerto Rico from the US mainland, Canada, Europe, or another foreign origin? Post-Wayfair guidance from the Departamento de Hacienda establishes remote-seller IVU collection obligations for sellers exceeding USD 100,000 in annual gross sales into Puerto Rico or 200+ separate transactions into Puerto Rico. Marketplace facilitators have specific responsibilities for collection on qualifying marketplace transactions.

Are your Puerto Rico sales actually in IVU’s tax base?

Place of supply for IVU follows where the customer receives the goods or service — Puerto Rico delivery addresses, Puerto Rico IP geolocation for digital services, Puerto Rico payment instrument origin, and other commercially relevant location data establish nexus to Puerto Rico.

Take Ljubljana Bio-Pharma d.o.o., a Slovenian specialty-pharmaceutical company with EUR 95 million revenue globally. Ljubljana Bio-Pharma operates a B2B specialty-pharmaceutical platform supplying advanced biologic drugs and diagnostic reagents to clinical research operators and pharmaceutical contract-manufacturing facilities. Puerto Rico is a major global hub for pharmaceutical and medical-device manufacturing — Ljubljana Bio-Pharma’s annual Puerto Rico revenue reached USD 2.4 million in 2025 through five San Juan-area pharmaceutical CMOs and two biotech research operators. Ljubljana Bio-Pharma’s Puerto Rico transactions are predominantly B2B to merchants holding valid Certificados de Compras Exentas (resale and certain other exempt categories) — properly documented, these are zero-IVU. Ljubljana Bio-Pharma’s compliance work centred on: confirming nexus thresholds were crossed; SURI merchant registration; obtaining and validating customer Certificados de Compras Exentas; monthly IVU return filing on residual taxable supplies; Act 60-aware structuring analysis for potential Puerto Rico operating presence.

When the Hacienda clock starts running

Three operational triggers under post-Wayfair guidance.

The economic nexus trigger applies on exceeding USD 100,000 in annual gross sales into Puerto Rico or 200+ separate transactions — establishing IVU collection obligation for the remote seller.

The marketplace facilitator trigger applies when a qualifying marketplace platform handles the transaction — the platform may be responsible for collection rather than the underlying remote seller.

The physical-presence trigger applies when an out-of-state seller creates physical presence in Puerto Rico — warehouse, employees, inventory storage, or other nexus-creating activity.

Getting registered with Hacienda — SURI merchant registration

Registration runs through Hacienda’s SURI platform. Operational steps:

• Apply for Número de Comerciante through SURI.
• Receive Certificado de Registro de Comerciante (merchant certificate).
• Configure billing platform for Puerto Rico 11.5% IVU on taxable supplies to Puerto Rico customers.
• Establish process for receiving and validating customer Certificados de Compras Exentas where B2B resale or other exempt categories apply.
• Designate Puerto Rico tax representative — recommended given operational complexity.

What you charge, and on what

11.5% combined IVU on most taxable supplies to Puerto Rico customers (10.5% Commonwealth + 1% Municipal). 4% applies on certain B2B services and listed categories. 0% applies on properly documented exempt supplies (resale, certain other exempt categories under valid Certificados de Compras Exentas).

What a Puerto Rico merchant invoice must say

Invoices must show: merchant name and Número de Comerciante; customer name and (where applicable) customer Número de Comerciante for B2B; itemised goods/services; taxable base; IVU calculation; total. For exempt supplies, the supporting Certificado de Compras Exentas must be on file.

Submitting and paying Hacienda

Monthly Planilla Mensual de IVU through SURI by the 20th day of the month following the tax period. Payment via SURI’s payment channels.

What this actually costs

• Puerto Rico tax representative retainer: USD 4,500–15,000 per year.
• Monthly return preparation: USD 800–2,500 per submission.
• SURI configuration: USD 2,500–7,500 initial.
• Annual reasonableness review by Contador Público Autorizado (CPA): USD 2,500–8,000.

What we see remote sellers get wrong

Three patterns recur.

The first: assuming US state sales-tax rules apply directly — Puerto Rico operates its own IVU framework distinct from US state sales taxes.

The second: under-investing in Certificado de Compras Exentas validation — B2B resale exemptions require proper documentation; missing certificates create exposure.

The third: ignoring Act 60 planning opportunities — for sellers building substantial Puerto Rico operations, Act 60 may offer materially preferential income-tax treatment under qualifying conditions.

Foreign E-commerce Seller into Puerto Rico

Ship physical goods into Puerto Rico from outside the US? You’re operating in the import / use-tax channel plus the post-Wayfair remote-seller framework. 11.5% IVU applies on taxable supplies; use tax applies where IVU is not collected at sale. Note that for goods shipping from the US mainland into Puerto Rico, federal customs interface is structurally minimal — Puerto Rico is in the US customs territory — but Puerto Rico-specific use tax / IVU applies at the Commonwealth level.

Are you actually ‘selling into Puerto Rico’?

Three structural models exist for selling physical goods to Puerto Rico consumers from outside the US. First: classic cross-border drop-ship from foreign origin — goods enter the US customs territory at port of entry (potentially US mainland or directly Puerto Rico), then route to Puerto Rico, with Puerto Rico IVU / use tax applicable. Second: local stock model — register Puerto Rico merchant entity, import in own name, charge Puerto Rico IVU on local sales. Third: marketplace-mediated — Amazon, eBay, and other qualifying marketplace facilitators have collection responsibilities on qualifying transactions.

Where IVU actually bites

For goods purchased through merchants with Puerto Rico IVU collection obligation, the merchant collects 11.5% at sale. For goods purchased from sellers without IVU collection obligation, the Puerto Rico purchaser owes use tax at the equivalent rate — Hacienda has enforced use-tax obligations through various mechanisms including audit and Notice and Reporting requirements.

US customs interface vs Puerto Rico use tax / IVU

Puerto Rico is part of the US customs territory — goods entering the US (whether at US mainland or directly Puerto Rico) clear US Customs under federal CBP rules. However, Puerto Rico’s separate Commonwealth tax framework means IVU / use tax applies at the Commonwealth level distinct from US federal customs. For non-US-origin goods, US Customs entry plus Puerto Rico IVU framework both apply.

Foreign Trade Zones (FTZ) in Puerto Rico

Puerto Rico hosts multiple US Foreign Trade Zones — operating under the federal FTZ Act framework but with specific Puerto Rico-overlay treatment. FTZs offer duty deferral, duty elimination on re-exports, and inverted-tariff opportunities. Within-FTZ activity benefits from specific federal customs treatment, with Puerto Rico IVU treatment varying by activity type.

What this actually costs

• US customs broker per shipment: USD 200–800.
• US Customs duties: variable by tariff line under HTSUS.
• Puerto Rico IVU: 11.5% standard (4% on certain B2B categories) on taxable supplies.
• SURI merchant registration and configuration: USD 2,500–7,500.
• Local fulfilment partner setup: USD 8,000–28,000.
• FTZ setup (if used): USD 25,000–80,000 initial + USD 15,000–45,000 annual operating; FTZ Board approval required.

What we see foreign e-commerce sellers get wrong

Three patterns recur.

The first: assuming US-mainland sales-tax templates apply — Puerto Rico IVU is operationally different from US state sales tax frameworks.

The second: ignoring marketplace facilitator rules — Amazon, eBay, and other qualifying platforms have collection responsibilities on qualifying transactions; relying on platform collection without verification creates exposure.

The third: misjudging FTZ vs standard import economics — FTZs offer real benefits for qualifying operations but represent overhead for marginal-fit operations.

Foreign Importer / Act 60 Operator into Puerto Rico

Importing into Puerto Rico for distribution, manufacturing, or onward sale — or considering Act 60 incentives for an export services, individual investor, or manufacturing operation? You’re in a B2B-physical or services channel with potentially materially preferential structural options. Act 60 is one of the most operationally significant business and individual incentives frameworks in the US-Commonwealth and Caribbean region.

The structural choice

Four models predominate. First: register a Puerto Rico entity (Corporación or LLC) as merchant of record under standard framework, obtain Número de Comerciante, conduct standard Puerto Rico operations. Second: register under Act 60 export services chapter — for qualifying services exported from Puerto Rico to non-Puerto Rico markets, materially preferential income-tax treatment (4% on qualifying export services income for the regime duration) applies. Third: Act 60 individual investor chapter — for qualifying individual relocations to Puerto Rico, 0% capital gains on certain post-relocation positions. Fourth: Act 60 manufacturing or other qualifying chapter — preferential treatment for qualifying manufacturing, agriculture, or other listed operations.

Act 60 (Ley 60-2019) — operational deep-dive

Ley 60-2019 (Código de Incentivos) consolidated prior incentives Acts (including Act 20 for export services and Act 22 for individual investors). Qualifying activities under the export services chapter include: advisory, consulting, financial, software development, marketing, management, electronic data processing, technology, and other listed export-oriented services to non-Puerto Rico customers. Benefits include 4% corporate income tax on qualifying export services income for the decree duration, 100% exemption on distributions to qualifying shareholders, and other preferential treatment. The compliance overlay — Decree application and approval through Departamento de Desarrollo Económico y Comercio (DDEC); ongoing compliance with employment, charitable contribution, and operational commitments; annual reporting — is real but structurally proportionate to the benefits.

Sourcing and substance considerations

Act 60 export services preferential treatment requires genuine Puerto Rico substance — operational presence, qualified employees performing the services from Puerto Rico, and services exported to genuinely non-Puerto Rico customers. US federal tax treatment of Puerto Rico-derived income for bona fide Puerto Rico residents and Puerto Rico operations follows specific rules under US Internal Revenue Code Section 933 and related provisions. Cross-border planning between Puerto Rico, US mainland, and foreign jurisdictions requires careful coordination.

What this actually costs

• Puerto Rico Corporación / LLC setup: USD 4,000–14,000.
• Número de Comerciante registration and SURI configuration: USD 2,000–6,500.
• Act 60 Decree application and approval: USD 15,000–45,000 initial; 6–12 month approval process typical.
• Customs broker retainer (for physical goods): USD 3,500–14,000 per year.
• Monthly IVU compliance: USD 1,500–4,500 per month for active merchants.
• Annual Act 60 compliance and reporting: USD 8,000–25,000 per year.
• US federal cross-border tax counsel: USD 20,000–80,000 per year for complex structures.

What we see foreign importers and Act 60 operators get wrong

Three patterns recur.

The first: under-investing in genuine Puerto Rico substance — Act 60 preferential treatment requires real operational presence and qualified employees in Puerto Rico; substance failures invite Decree revocation and US federal tax reclassification.

The second: misreading US federal cross-border tax treatment — Section 933 and related US Internal Revenue Code provisions create complex but structurally significant rules requiring specialist US federal tax counsel.

The third: under-investing in annual Act 60 compliance — Decree maintenance requires ongoing employment, charitable contribution, and operational compliance plus annual reporting; lapses trigger Decree revocation exposure.

Local Puerto Rico Merchant

Puerto Rico resident merchant with annual gross sales above USD 100,000 (or 200+ transactions)? IVU collection obligation applies under standard merchant framework. Smaller merchants below the Small Merchant threshold may have simplified obligations. For most commercial-scale operations, the standard merchant framework applies with monthly Planilla Mensual de IVU and SURI compliance.

Standard merchant framework

Standard merchants register through SURI, obtain Número de Comerciante and Certificado de Registro de Comerciante, charge 11.5% IVU on taxable supplies (4% on certain B2B categories, 0% on properly documented exempt supplies), and file monthly Planilla Mensual de IVU.

Monthly compliance rhythm

Standard merchants submit Planilla Mensual de IVU through SURI by the 20th day of the month following the tax period. Late filing triggers fines under Código de Rentas Internas; late payment triggers interest plus penalty surcharge (typically 10% initial penalty plus accruing interest).

Annual Puerto Rico Income Tax return

Puerto Rico operates its own corporate income tax — generally up to 37.5% combined (corporate rate plus alternative minimum tax considerations) on net profit for standard operations. Act 60 operators benefit from preferential rates (typically 4% on qualifying export services income). Annual return by Hacienda-published deadline.

Sales of services and SURI infrastructure

SURI is the primary electronic infrastructure for Puerto Rico tax compliance — IVU, income tax, and other Hacienda obligations. Familiarity with SURI workflows materially affects compliance overhead.

What we see Puerto Rico merchants get wrong

Three patterns recur.

The first: misapplying the 4% rate on B2B services — sectoral and transaction-type specifics matter; getting the rate wrong on B2B service supplies creates exposure.

The second: under-investing in Certificado de Compras Exentas validation — exemption claims require valid customer certificates; missing certificates create exposure.

The third: under-using Act 60 planning opportunities — qualifying export service operations may benefit from materially preferential income-tax treatment under Decree-based framework.

Cross-track essentials

Penalty exposure table

Puerto Rico’s penalty framework under the Código de Rentas Internas calculates fines in USD-denominated amounts or as percentages of underpaid tax. Common categories:

• Late filing — USD-denominated fines per omitted return depending on category and delay.
• Late payment — initial penalty (typically 10% of underpaid amount) plus accruing interest at Hacienda-published rate.
• Negligent under-reporting — up to 25% of underpaid IVU.
• Fraudulent under-reporting — up to 50% or higher; criminal prosecution exposure under Código de Rentas Internas with imprisonment for material amounts.
• Failure to register as merchant where required — specific fines per violation plus exposure to retrospective IVU assessment on all uncollected amounts.

Audit triggers

Hacienda deploys risk-based selection. Common triggers: IVU collection variances vs reported sales, exempt-sale claims without proper Certificado documentation, sector-benchmark variance, Act 60 substance and qualifying-activity disputes, mismatch between IVU and Puerto Rico income tax bases, marketplace facilitator coverage gaps.

Records retention

Puerto Rico requires 6 years of records from the date of the relevant tax filing under Código de Rentas Internas. Records must be available to Hacienda on request. Electronic records through SURI count as primary records.

USD operations — practical note

Puerto Rico uses the USD as its sole currency, with no currency-translation overhead. For USD-functional foreign businesses (or US-mainland sellers), Puerto Rico is operationally low-friction on the currency interface — the structural complexity sits elsewhere (Commonwealth-specific IVU framework, Act 60 planning, US federal cross-border interaction).

Frequently Asked Questions

Why does Puerto Rico use IVU instead of US-style sales tax?

Puerto Rico is a US Commonwealth — it operates its own consumption tax (IVU) under its own Código de Rentas Internas, not a US federal sales tax (the US has no federal sales tax) and not a US state sales tax (US states operate their own systems). IVU’s 11.5% combined rate (10.5% Commonwealth + 1% Municipal) is structurally distinct from any US-mainland framework.

How does IVU interact with US federal taxation?

IVU is a Commonwealth tax, separate from US federal taxation. Puerto Rico’s Commonwealth income tax also operates separately from US federal income tax for most categories — under specific rules (US Internal Revenue Code Section 933 and related provisions), Puerto Rico-source income of bona fide Puerto Rico residents and qualifying Puerto Rico operations may be excluded from US federal income tax. US federal employment taxes (Social Security, Medicare) generally apply. Cross-border planning requires specialist US federal tax counsel.

What’s the post-Wayfair remote-seller threshold?

Generally USD 100,000 in annual gross sales into Puerto Rico or 200+ separate transactions. Verify current threshold per Hacienda guidance.

How do marketplace facilitator rules work?

Qualifying marketplace platforms (Amazon, eBay, others meeting Hacienda’s marketplace facilitator definition) have collection responsibilities on qualifying transactions sold through their platforms. Underlying remote sellers should verify which transactions are platform-collected vs requiring own collection.

What is Act 60 and how do I qualify?

Ley 60-2019 (Código de Incentivos) consolidates Puerto Rico’s preferential incentives across multiple chapters — export services (former Act 20), individual investor (former Act 22), manufacturing, agriculture, and others. Qualifying operations may benefit from materially preferential income-tax treatment under Decree-based framework administered by DDEC. Qualification requires Decree application, genuine Puerto Rico substance, and ongoing compliance commitments.

How does SURI work?

Sistema Unificado de Rentas Internas — Hacienda’s centralised electronic platform for IVU, income tax, and other tax compliance. All standard tax filings, payments, and many Hacienda interactions route through SURI.

What’s the Puerto Rico corporate income tax rate?

Generally up to 37.5% combined (corporate rate plus alternative minimum tax considerations) on net profit for standard operations. Act 60 qualifying operations benefit from preferential rates (typically 4% on qualifying export services income). Annual return by Hacienda-published deadline.

What records must I keep and for how long?

6 years from the date of the relevant tax filing under Código de Rentas Internas. Records must be available to Hacienda on request.

Where do I check current Hacienda guidance?

Hacienda’s portal at hacienda.pr.gov — Cartas Circulares (CC) and Determinaciones Administrativas (DA) sections publish current administrative guidance. SURI handles operational compliance. Engage a Puerto Rico CPA plus US federal tax counsel for cross-border decisions.

Recent and upcoming changes

Puerto Rico’s IVU framework has been operationally stable in headline architecture (10.5% Commonwealth + 1% Municipal = 11.5% combined) since post-2015 reforms. The structural themes have been: post-Wayfair (2018) remote-seller and marketplace facilitator implementation; Ley 60-2019 consolidation of prior incentives Acts into the unified Código de Incentivos; ongoing SURI platform evolution; continued Act 60 Decree administration through DDEC.

2025 — Continued SURI evolution and Act 60 enforcement

Hacienda continued SURI platform refinements. DDEC continued Act 60 Decree administration with focus on substance and compliance enforcement.

2024 — Marketplace facilitator and remote seller refinements

Continued operational guidance on marketplace facilitator coverage and remote-seller nexus thresholds post-Wayfair.

Ongoing — Act 60 framework

Ley 60-2019 (Código de Incentivos) continues to operate as the unified incentives framework. Specific chapter-level operational refinements continue through DDEC guidance.

Primary sources & further reading

• Departamento de Hacienda — primary tax authority portal; Cartas Circulares, Determinaciones Administrativas, SURI access
• SURI — Sistema Unificado de Rentas Internas — centralised electronic platform for IVU and income tax compliance
• Departamento de Desarrollo Económico y Comercio (DDEC) — Act 60 incentives administration
• Código de Rentas Internas de Puerto Rico (Ley 1-2011) — IVU and Income Tax framework
• Ley 60-2019 — Código de Incentivos (Act 60 framework)
• US Internal Revenue Service — Puerto Rico Section — US federal tax treatment of Puerto Rico operations
• US Foreign Trade Zones Board — federal FTZ framework applicable to Puerto Rico FTZ operations

Disclaimer

This guide is published by TaxDo as part of the Global Tax Hub. It is general commentary on Puerto Rico Commonwealth indirect tax (IVU) and the Act 60 incentives framework at the date shown and is not legal, tax, or accounting advice for any specific transaction or business. Puerto Rico operates as a US Commonwealth with its own tax system distinct from US federal and US state taxation — IVU operates under the Código de Rentas Internas, with the post-Wayfair remote-seller framework and marketplace facilitator rules. Act 60 (Ley 60-2019, Código de Incentivos) consolidates prior incentives Acts and offers materially preferential treatment for qualifying export services, individual investor, manufacturing, and other operations under Decree-based framework. Statute, regulation, Hacienda administrative guidance, IVU rates, nexus thresholds, and Act 60 qualifying conditions change; current applicability must be verified. Cross-border planning between Puerto Rico, US mainland, and foreign jurisdictions requires specialist US federal tax counsel. Engage a Puerto Rico CPA plus US federal tax counsel for transaction-specific analysis. TaxDo accepts no liability for action taken in reliance on this guide.