Puerto Rico Eliminates Excise Tax and Introduces Sales/Use Tax

Effective November 15, 2006, Puerto Rico’s recently-enacted Law No. 177 formally eliminates its excise tax and replaces it with a general sales and use tax. The law authorizes a 5.5% island-wide and 1.5% local sales and use tax generally applicable to tangible personal property, services, and admission charges (Law No. 177)

Posted on November 8, 2006