# Puerto Rico Sales Tax (IVU) Guide (2026)

Canonical: https://trykintsugi.com/sales-tax-guides/usa/puerto-rico
Published: September 22, 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.

- **SaaS:** Taxable
- **Clothing:** Taxable
- **Groceries:** Exempt
- **Digital Goods:** Taxable

- **Effective date::** 
- **Scheduled change::** 

## 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

## 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.

## 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)](https://hacienda.pr.gov/publicaciones/determinacion-administrativa-num-15-17)

- [2] [Puerto Rico Hacienda — CC RI 23-10 (economic nexus)](https://hacienda.pr.gov/publicaciones/carta-circular-de-rentas-internas-num-23-10-cc-ri-23-10)

- [3] [Puerto Rico Hacienda — Digital Products Regulation (SaaS and digital taxable)](https://hacienda.pr.gov/sites/default/files/publicaciones/2022/01/regulation_sut_changes_digital_goods_clean_version_para_aviso_oal_1262022.docx.pdf)

- [5] [Puerto Rico Hacienda — Food and prepared-food rates (groceries exempt)](https://hacienda.pr.gov/certificado-de-tasa-reducida-de-7-del-ivu-en-alimentos-preparados-0)

- [7] [Puerto Rico Hacienda — Reseller Certificates](https://hacienda.pr.gov/ivu/comerciantes-revendedores)

- [8] [Puerto Rico Hacienda — Appeals Procedure (30 days)](https://hacienda.pr.gov/apelaciones/procedimiento-apelativo)

- [9] [Puerto Rico Hacienda — CC RI 25-13 (IVU-free days)](https://hacienda.pr.gov/publicaciones/carta-circular-de-rentas-internas-num-25-13-cc-ri-25-13)

- [10] [Puerto Rico Hacienda — Merchant Registration (SURI)](https://hacienda.pr.gov/ivu/registro-de-comerciante)

Verified July 2026 against Puerto Rico Departamento de Hacienda published guidance.

## Frequently Asked Questions

### What is the Puerto Rico sales tax (IVU) rate in 2026?

Puerto Rico's IVU is a combined 11.5% — a 10.5% Commonwealth rate plus a 1% municipal rate.

### What is Puerto Rico's economic nexus threshold?

$100,000 in gross sales or 200 separate transactions into Puerto Rico in a year for non-resident merchants.

### Is SaaS taxable in Puerto Rico?

Yes. Puerto Rico taxes SaaS and digital services at the full 11.5% IVU rate, because its definition of taxable items covers digital products and taxable services, not just tangible property.

### How do I register for IVU in Puerto Rico?

Register through the SURI portal at least 30 days before making taxable sales; late registration can draw a $10,000 fine.

### When are Puerto Rico IVU returns due?

Monthly, by the 20th of the month following the reporting period, filed through SURI.

### Does Kintsugi support Puerto Rico?

Puerto Rico support is coming soon. Kintsugi monitors exposure across US states and many jurisdictions today.

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