Puerto Rico Sales Tax (IVU) Guide (2026)
Puerto Rico's IVU sales and use tax is 11.5% — higher than any US state — and SaaS is taxable. Economic nexus starts at $100,000 or 200 transactions.
Last updated:
Key Takeaways
Puerto Rico's sales and use tax (IVU) is 11.5%, made up of a 10.5% territory rate and a 1% municipal rate, with a reduced 4% rate on many business-to-business and designated professional services [1]. You have economic nexus once a non-resident merchant exceeds $100,000 in gross sales or 200 transactions into Puerto Rico in a year [2]. SaaS and digital products are taxable at 11.5%, while unprocessed groceries and prescription medicines are exempt [3][5]. Register and file through SURI [10].
Taxability Snapshot
SaaS
Taxable
Clothing
Taxable
Groceries
Exempt
Digital Goods
Taxable
Sales Tax Rates
Puerto Rico, a US territory, levies a sales and use tax known as the IVU at a combined 11.5% — a 10.5% Commonwealth rate plus a 1% municipal rate. It is one of the highest sales tax rates under the US flag.
Component | Rate | Scope |
|---|---|---|
Commonwealth IVU | 10.5% | Territory-wide |
Municipal IVU | 1.0% | All municipalities |
Combined | 11.5% | Territory-wide |
A reduced 4% rate applies to many business-to-business services and designated professional services.
Effective date:
Scheduled change:
Registration or Nexus Threshold
Puerto Rico economic nexus applies once a non-resident merchant exceeds $100,000 in gross sales or 200 separate transactions into the territory in a year. Physical presence creates nexus immediately.
Filing Frequency & Deadlines
Puerto Rico requires monthly IVU returns filed through the SURI portal. Returns and payment are due the 20th of the month following the reporting period — sales in April are due May 20.
Exemptions
Puerto Rico exempts certain groceries, prescription medicines, and some medical items from the IVU. SaaS and digital services are taxable at the full 11.5% rate, as Puerto Rico's definition of taxable items covers specified digital products alongside tangible personal property and taxable services.
Resale & Exemption Certificates
Registered resellers apply through SURI for a Certificado de Revendedor, and eligible resellers can obtain a Certificado de Revendedor Elegible that lets them buy inventory without paying IVU up front [7]. The certificates are issued and managed in SURI [7].
Penalties
Late filing or payment carries penalties and interest under Puerto Rico Treasury rules, and failing to register on time can draw a fine of up to $10,000.
Audits & Appeals
After a preliminary deficiency notice, you file a request for reconsideration or administrative hearing with Hacienda's Office of Administrative Appeals within 30 days of the mailing date [8]. After a final deficiency notice, you can go to the Court of First Instance within 30 days [8].
Sources
[1] Puerto Rico Hacienda — IVU rate (11.5%, reduced 4% services)
[3] Puerto Rico Hacienda — Digital Products Regulation (SaaS and digital taxable)
[5] Puerto Rico Hacienda — Food and prepared-food rates (groceries exempt)
Verified July 2026 against Puerto Rico Departamento de Hacienda published guidance.
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