PRTD administrative determinations extend monthly SUT deadline, grants temporary exemption of SUT for prepared foods

As a result of the lack of electricity and water services due to the damages caused by Hurricane Fiona, the Puerto Rico Treasury Department (PRTD) issued two administrative determinations related to the imposition, collection and payment of the Sales and Use Tax (SUT).

The determinations were released following Puerto Rico Governor's issuance of Executive Order No. OE-2022-045 on Saturday, September 17, 2022, which declared Puerto Rico in a state of emergency as the island prepared for the threat of Tropical Storm Fiona, that became a hurricane before reaching Puerto Rico on Sunday, September 18. Below is a summary of the PRTD administrative determinations.

PRTD Administrative Determination No. 22-06 (DA 22-06)

Through DA 22-06, PRTD extended until Tuesday, September 27, 2022, the deadline to file the Monthly SUT Return for the month of August 2022, which was required to be submitted no later than Tuesday, September 20, 2022. The deadline to make the corresponding SUT deposit was also extended.

PRTD determined not to impose the penalties related to the filing and payment of the Monthly SUT Return whose due date is September 20, 2022, to any taxpayer who, to the satisfaction of the Secretary, shows an exercise of good faith to comply with the filing of the Monthly SUT Return and payment no later than Tuesday, September 27, 2022. Should the system impose a penalty, the taxpayer must request its removal by submitting a penalty removal request through their SURI account, together with evidence of filing and payment, and showing a copy of DA 22-06.

PRTD Administrative Determination No. 22-07 (DA 22-07)

Through DA 22-07, PRTD temporarily exempts Prepared Foods acquired by any natural person located in Puerto Rico from the imposition of state and municipal SUT. The period of the temporary SUT exemption on Prepared Foods will begin at 12:01 a.m. on Thursday, September 22, 2022, and will conclude at 11:59 p.m., on Thursday, October 6, 2022.

Merchants shall report such sales in the line provided for “Sale of Exempt Tangible Movable Property” of the Monthly SUT Return and/or Monthly Imports Tax Return.

It should be noted that the Temporary SUT Exemption on Prepared Foods established in DA 22-07 will not apply to the sale of alcoholic beverages.

At RSM Puerto Rico, we can provide you with additional information regarding this matter. Please contact our tax advisors at (787) 751-6164 | [email protected] for help or more information.