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Amazon to charge Puerto Rico sales tax

By on March 16, 2018

SAN JUAN – Puerto Rico Treasury Secretary Raúl Maldonado announced Friday that a collaborative agreement has been reached with Amazon, and as of April 1, the e-commerce giant will begin collecting Puerto Rico sales tax on sales of goods.

Maldonado said in a statement that Treasury and Amazon are developing all the “tax collection settings necessary to calculate and collect all Puerto Rico sales taxes with respect to online in-state purchases made by Puerto Rico customers.”

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The Treasury release references Puerto Rico’s Internal Revenue Code, which states that “all merchants engaged in business of selling personal tangible property to Puerto Rico customers through the internet, otherwise referred to as a ‘non-withholding agent,’ could voluntarily request to become a withholding agent for purposes of Puerto Rico Sales and Use Tax, and, therefore, collect and remit the corresponding tax to Treasury in accordance with terms and conditions agreed upon between such agents and Treasury.”

Maldonado added that Treasury “has engaged in conversations with some of the largest online retailers to discuss the possibility of establishing collaborative agreements with such retailers and carry out all commercially reasonable efforts to manage online sales of taxable items that may be subject to sales tax under Puerto Rico Law.”

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