Puerto Rico VAT / Sales Tax
Detailed vat / sales tax rates and rules for Puerto Rico in 2026.
VAT / Sales TaxUSD
Puerto Rico levies an 11.5% Sales and Use Tax (SUT/IVU), consisting of 10.5% state tax and 1% municipal tax. This applies to most goods and some services. Unprepared food, prescription medicines, and certain essential items are exempt. Puerto Rico considered converting the SUT to a full VAT but has not yet done so. B2B services are generally subject to the SUT unless specifically exempt.
Standard Rate
11.5%
Registration Threshold
All businesses making taxable sales must register
Reduced Rates
1% — Prepared food (municipal SUT component only)0% — Unprepared food, prescription medicines, educational materials
How Puerto Rico VAT / Sales Tax compares
Puerto Rico’s standard VAT / sales tax rate of 11.5% is the 138th highest of 203 countries TaxAtlas tracks, below the global average of 13.7% and North America’s regional average of 10.4%.
Puerto Rico
11.5%
North America average
10.4%
Global average
13.7%
