IVU = A Merchant's Registration Certificate is an official authorization from the Puerto Rico Department of the Treasury that permits a business to operate and act as a withholding agent in Puerto Rico. All businesses, including sole proprietors, must obtain this certificate, which is now applied for and printed through the SURI online system.

What it is:

• Official authorization:

The certificate is the official proof that a merchant is registered with the government and is authorized to conduct business in Puerto Rico. 

• Withholding agent responsibility:

It confirms the merchant's responsibility for collecting and remitting taxes as a withholding agent.  

• Mandatory for all businesses:

Any person or entity, including sole proprietors, engaged in business in Puerto Rico must register and obtain this certificate. 

• Visible to the public:

The certificate must be posted in a visible location

ATTENTION: All quotes and Invoices are subject to the additional IVU (Municipal & State Tax) of 11.5%.

What is the sales tax rate in Puerto Rico?

The sales and use tax rate in Puerto Rico is 11.5%. The municipality where the sale took place receives 1% of that, and the government of Puerto Rico receives the remaining 10.5%.

How to calculate sales tax in Puerto Rico?

Calculating sales tax in Puerto Rico is fairly straightforward, with the general IVU rate being 11.5%. To figure out how much tax to charge, multiply the taxable sales price by 0.115.

For example, if you sell an item for $100:

$100 × 0.115 = $11.50 in sales tax

The customer would pay a total of $111.50.