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Frequently Asked Questions

PART I: SALES AND USE TAX MONTHLY RETURN

The following questions and answers explain the terms and concepts used in Form AS 2915.1: Sales and Use Tax Monthly Return.

 

1. Who shall file the Sales and Use Tax Monthly Return?

2. When and where shall the Sales and Use Tax Monthly Return be filed?

3. What basic information shall be included in the Sales and Use Tax Monthly Return?
4. What sales are included in the gross sales?
5. In what period shall the sales be declared?
6. What deductions may be claimed in the Sales and Use Tax Monthly Return?
7. What can be included in the exempt sales deduction?
8. What are taxable items?
9. What can be included in the deduction for returns?
10. What credits may be claimed in the Sales and Use Tax Monthly Return?
11. What penalty would apply in case of a fraudulent credit claim?
12. If, for any reason, a merchant makes no sales during a specific month or period, will he or she have the obligation to continue filing the Sales and Use Tax Monthly Return?
13. What purchases or transactions are subject to the use tax?

14. What penalty would apply if you do not pay the use tax in the purchase of taxable items previously used by exempt persons?

15. What penalty would apply if the merchant or individual sends the Sales and Use Tax Monthly Return to the Department of the Treasury after the prescribed date?
PART II: FORMS OF PAYMENT OF THE SALES AND USE TAX
16. When is the sales and use tax payment due?
17. What options are available for paying the sales and use tax?
18. Who has the obligation to pay the sales and use tax through an electronic transfer of funds?
19. What penalty would apply if a merchant wrongfully collects the sales and use tax?
20. What penalty would apply if the merchant or individual does not remit the sales and use tax to the Department of the Treasury?

 

 

 

 

 

 

 

 

PART I: SALES AND USE TAX MONTHLY RETURN  
1. Who shall file the Sales and Use Tax Monthly Return?

The following persons shall file the Monthly Return:

  • every merchant engaged in the business of selling taxable items (including tangible personal property, taxable services, and admission fees) in the Commonwealth of Puerto Rico;
  • any merchant who uses, consumes, or stores taxable items in the Commonwealth of Puerto Rico; and
  • any person who has acquired taxable items subject to the use tax, including those who acquire a taxable item from a person who has benefited from one of the exemptions provided in the Code.

One return shall be filed for every commercial establishment. Consolidated returns are not allowed.


2. When and where shall the Sales and Use Tax Monthly Return be filed?

The Monthly Return is due on the tenth (10) day of the month following the month during which the transaction subject to the sales and use tax occurred.
Said return may be filed by accessing our web page at www.hacienda.gobierno.pr or by telephone. You may also mail it to the following address:


DEPARTMENT OF THE TREASURY
SUT MONTHLY RETURN
P.O. BOX 9024140
SAN JUAN, PR 00902-4140


Merchants with a sales volume equal or greater than $500,000 shall have the obligation to file this return by electronic means.


3. What basic information shall be included in the Sales and Use Tax Monthly Return?

The Monthly Return shall include the following information:

  • Name of the merchant or retail seller. In the case of individuals doing business as sole proprietors, they shall include their name and last names.
  • Merchant's Registration Number assigned by the Department of the Treasury.
  • Merchants without a Merchant's Registration Number shall fill out and file the Application for Merchants' Registration Certificate and Exemption Certificate (Form AS 2914.1).
  • Social Security or Employer Identification Number.
  • Period for which the return is filed.
  • Gross sales for the period.
  • Exempt sales for the period.
  • Deduction for returns.
  • Purchases subject to the use tax.
  • Sales and use tax deposits made during period.
  • Interest, surcharges, and penalties, as applicable.
  • Name, signature, and registration number of the specialist, as applicable.

4. What sales are included in the gross sales?

Gross sales include the sales subject to the sales and use tax and exempt sales made during the month.

When the Secretary has authorized collection of the tax together with the sales price, as provided in Section 2406 of the Code, the sales subject to the sales and use tax shall be determined dividing the gross sales by 1.055.


5. In what period shall the sales be declared?

Sales shall be declared in accordance with the accounting method used by the merchant to report his or her income in the income tax return.


For example, a merchant using the accrual method who sells an item on credit in December, shall have to declare such sale in the December Monthly Return, which shall be filed on or before January 10, regardless of when he or she receives payment.


6. What deductions may be claimed in the Sales and Use Tax Monthly Return?

The following may be deducted:

  • Exempt sales (Line 2 of the Monthly Return)
  • Returns (Line 3 of the Monthly Return)

7. What can be included in the exempt sales deduction?

Exempt sales include the sale of:

  • taxable items for resale;
  • raw materials and machinery and equipment used in manufacturing;
  • taxable items by stores in air or maritime terminals to persons traveling outside of the jurisdictional borders of the
  • Commonwealth of Puerto Rico;
  • taxable items acquired for official use of the agencies and instrumentalities of the Government of the United States and the
  • Commonwealth of Puerto Rico;
  • admission fees for sports or other types of events sponsored by public or private elementary schools, intermediate schools,
  • high schools, universities or colleges that provide educational services;
  • foods and food ingredients, as such term is defined in Section 2301(a) of the Code;
  • medicines for human consumption that may be acquired only and exclusively with a medical prescription if they comply with the
  • requirements established in Section 2512 of the Code;
  • services rendered to a person engaged in a trade or business or carrying out activities for the production of income;
  • designated professional services, as such term is defined in Section 2301(nn) of the Code;
  • services rendered by the Commonwealth of Puerto Rico, including sewer service;
  • educational services, including registration costs;
  • health or medical hospital services; and
  • any other sale that qualifies under any of the exemptions established by the Code.

As applicable, the merchant shall require and keep evidence of the exempt condition of every purchaser.


8. What are taxable items?
Taxable items are: tangible personal property, taxable services, admission fees, and bundled transactions, as defined in Section 2301 of the Code.

9. What can be included in the deduction for returns?

When a merchant accepts returns of taxable items from a purchaser from whom such merchant collected taxes, the merchant shall return the amount of the tax collected to the purchaser.


The merchant may include in Line 3 of the Monthly Return, Deduction for Returns, the sales price corresponding to all the returns of taxable items received during the month, and for which the merchant refunded the purchasers for the amount of the originally collected tax. The deduction for returns shall be reported in the Monthly Return corresponding to the month during which the returns were made, regardless of the date of the sale.


10. What credits may be claimed in the Sales and Use Tax Monthly Return?

The following credits may be claimed:

  • Credit for sale of the merchant's property (Section 2702 of the Code)
  • Credit for bad debts (Section 2703 of the Code)
  • Credit for taxes wrongfully paid by the merchant (Section 2704 of the Code)

11. What penalty would apply in case of a fraudulent credit claim?
Every merchant who fraudulently, and with the intention of evading his or her tax responsibility, claims a credit under the provisions of Subtitle BB of the Code, shall be responsible for, in addition to paying the tax, a penalty equal to double the amount of the illegally claimed credit, plus the corresponding interest and surcharges.

12. If, for any reason, a merchant makes no sales during a specific month or period, will he or she have the obligation to continue filing the Sales and Use Tax Monthly Return?
In such a case, the merchant shall file a Sales and Use Tax Monthly Return for an amount of zero. If he or she fails to do so, he or she shall be subject to the penalties provided in Subtitle F of the Code.

13. What purchases or transactions are subject to the use tax?

The following purchases or transactions, among others, shall be subject to the use tax:

  • The personal or business use or consumption of taxable items that are purchased with an Exemption Certificate, but are
  • subsequently used for non-exempt purposes, shall be subject to the use tax.
  • If you purchase taxable items from a seller located outside of Puerto Rico without paying the Puerto Rico sales tax, and you use
  • the taxable items in Puerto Rico for non-exempt purposes, the purchase shall be subject to the use tax.
  • If you purchase taxable items from another person who benefited from any of the exemptions provided in the Code, the
  • purchase shall be subject to the use tax.

If you carry out purchases or transactions that are subject to the use tax, you shall declare the total price of all the purchases made during the month in Line 4 of the Sales and Use Tax Monthly Return.


14. What penalty would apply if you do not pay the use tax in the purchase of taxable items previously used by exempt persons?

Any person who acquires a taxable item from an exempt person and does not pay the use tax, as provided in Sections 2508(b) and 2509(e) of the Code, shall be responsible for paying such tax plus a penalty of 50% of the tax.

15. What penalty would apply if the merchant or individual sends the Sales and Use Tax Monthly Return to the Department of the Treasury after the prescribed date?
A progressive penalty shall be imposed for failing to file the Sales and Use Tax Monthly Return, unless it is demonstrated that such omission is due to a reasonable cause and not to voluntary carelessness. A 5% will be added to the balance of the sales and use tax if the omission does not exceed 30 days, and an additional 10% for every additional 30 day period or period fraction while the omission subsists, without exceeding a total of 25%.

PART II: FORMS OF PAYMENT OF THE SALES AND USE TAX
16. When is the sales and use tax payment due?
The sales and use tax shall be paid no later than the tenth (10) day of the month following the month during which the transaction subject to such tax occurred. If the tenth (10) day were a Saturday, Sunday, or a federal or state holiday, the payments shall be accepted if they are postmarked on the next working day. The payments that the Secretary requires to be sent electronically shall be received no later than the tenth (10) day of the month following the month during which the transaction subject to the tax occurred.

17. What options are available for paying the sales and use tax?

Payment shall be made by:

  • check or money order made payable to the Secretary of the Treasury;
  • electronic transfer of funds;
  • Payments Online at www.hacienda.gobierno.pr; or
  • any other method established by the Secretary.

For additional information about the methods of payment, please refer to our web page at www.hacienda.gobierno.pr.


18. Who has the obligation to pay the sales and use tax through an electronic transfer of funds?

Merchants with a sales volume equal or greater than $200,000, as reported in the Application for Merchants' Registration Certificate and Exemption Certificate, shall remit the sales and use tax through an electronic transfer of funds.


19. What penalty would apply if a merchant wrongfully collects the sales and use tax?
Any merchant who wrongfully or excessively retains the sales and use tax shall be subject to a penalty of $100 for every receipt, invoice, bill, or other evidence of sale.

20. What penalty would apply if the merchant or individual does not remit the sales and use tax to the Department of the Treasury?
Any person who does not remit the sales and use tax to the Department of the Treasury shall be subject to a penalty of no less than 25% and no more than 50% of the determined insufficiency. In cases of recurrence, the penalty shall be 100% of the amount of the determined insufficiency. The term "insufficiency" means the excess amount of tax that should have been deposited over the amount, if any, of the insufficiency that was deposited on or before the date set for it.

 


 

 

 
 
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