Saturday, February 24, 2018

Puerto Rico Treasury announces sales tax withholding agreement with unspecified online company

By on February 13, 2018

SAN JUAN – Puerto Rico Treasury Secretary Raúl Maldonado Gautier announced Tuesday that his agency reached an agreement with one of the “main” online sales companies to collect the sales and use tax (IVU by its Spanish acronym) from its local customers.

“With this agreement, we ensure that people who make purchases through the different digital platforms offered by the company, comply with payment of the IVU. Once the company withholds the payment, it sends it directly to the Treasury Department and taxpayers do not have to make the payment to the agency, since they have already fulfilled their responsibility,” the official said in a written statement.

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Maldonado Gautier explained that Treasury is in talks with other online sales companies that have no locations in Puerto Rico to achieve similar agreements and “do justice to local commerce, under Act 25 of 2017, according to Treasury’s release.

“Our commitment is to protect and do justice to the small-business people who comply with the IVU collection and remit it to the Treasury as stipulated in the Internal Revenue Code. We want to make sure that what a citizen buys through the different technological tools is in compliance and not be unfair competition for our business people,” he said.

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