Puerto Rico decide whether to introduce VAT on e-services

31 August 2017

Puerto Rico is considering the introduction of VAT at 15% on the provision of electronic services in the country.

At present, businesses providing digital services do not have to charge VAT on their sales. However, in an effort to cut its growing state deficit, the Puerto Rican government has announced that it is considering introducing the tax at 15% on the sales of these types of services, which includes sales by foreign businesses.

If introduced this new tax will likely apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.