The Puerto Rico Convention Bureau would like to inform their clients and membership that, for the first time in Puerto Rico, a Sales and Use Tax system which substitutes the 6.6% general excise tax has been implemented.  The Sales Tax rate will be 5.5%, and will become effective on November 15, 2006.  The Act also establishes that each municipality has the option to impose an additional sales tax of up to 1.5% as of July 1, 2006.

Click here to download general information about the excise tax.

Any taxable item temporarily introduced to Puerto Rico which is directly related to trade shows, conventions, seminars, film production, construction, or for other purposes and is re-exported from Puerto Rico by the same person who imported the material is exempt as long as the return is done within 60 days from the day of importation to Puerto Rico.

1.  IMPORT - the following information will be submitted to the Treasury Department (Hacienda)           
by each exhibitor or meeting organizer upon import of materials: *

• Form SC 2914.1 (English) SC2914 (Spanish) Application for Certificate of Merchant

• Commercial Invoice/Packing List
• House Air Way Bill (HAWB) (agreement between the exhibitor and the carrier importing the goods) or copy of Contract with Hotel. 
• Master Air Way Bill (MAWB) or Shipping documents.

• Commercial Invoice/Packing list
• House Air Way Bill (HAWB) (agreement between the exhibitor and the carrier exporting the goods) or copy of Contract with Hotel.
• Bill of Sale indicating items sold on show site and the sale price (refer to Sales & Use on Merchandise section)
• Master Air Way Bill (MAWB) as proof of intent to export or Shipping documents.

  *The Treasury Department (Hacienda) will waive the inspection process of each shipment                    as a rule but reserves the right to conduct random ocular inspections as deemed necessary during the import and export processes.    

• SALES & USE TAX ON MERCHANDISE – Please note that the Municipal Tax only applies when there is selling of merchandise

 Selling of merchandise during exhibitions, educational seminars, and meetings in general will be subject to State and Municipal tax not to exceed 7% (5.5% State and up to 1.5% Municipal). All companies and/or individuals engaging in a sales transaction must posses a valid registration certificate from Puerto Rico. 

• Registration Process:

• Fill-out SC2914.1 form (English) SC2914 form (Spanish) Certificate of Merchant Registration
• Certificate should be requested 30 days prior to the event
• Certificate of Merchant Registration will be issued by the Treasury Department (Hacienda)
• Same process applies for Municipalities**

• Payment of Sales & Use Tax collections:

Please refer to the Treasury Department and Municipality’s web page for payment and tax form information.

**Municipality of San Juan only – applies same registration process in the Treasury Department (Hacienda).  Therefore, you only need to register once in Hacienda.

DISCLAIMER:

• Every Merchant must file a Sales and Use Tax Return upon completion of exhibition and/or event.  Failure to comply with the Puerto Rico Sales and Use Tax will result in fines and penalties.  The Puerto Rico Convention Bureau, its employees, and/or its associates are not responsible for the above mentioned forms, payment and/or submission of documents to the local Treasury Department (Hacienda).

For more information contact the following offices:

Treasury Department (Hacienda)
P.O. Box 9024140
San Juan, PR  00972-4140
Tel.:  (787) 721-2020

For registration: 1 (888) 721-5551
www.hacienda.gobierno.pr
click on:  Certificados de Agente Retenedor (Registration Certificate)

San Juan Municipality
P.O. Box 9024100
San Juan, PR  00902-4100
Tel:  (787) 757-7300 exts. 4017, 4018
www.sanjuancapital.com/chavito.asp
click on:  Registro de detallistas impuesto de ventas (Registry for Merchants)

All other Municipalities
www.gobierno.pr
click on:  directorios (directory) then municipios (municipalities)

PREPARED BY:  The Puerto Rico Convention Bureau
November 13, 2006