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The government temporarily eliminates the payment of the IVU in the purchase of prepared foods

Governor Pedro Pierluisi announced this Monday the temporary exemption from the payment of the Sales and Use Tax (IVU), for prepared food starting on Thursday, September 22, 2022.

“As part of the measures we have taken in favor of our people in the face of the emergency caused by Hurricane Fiona, I asked the Secretary of the Department of the Treasury, Francisco Parés Alicea, to issue Administrative Determination 22-07, which establishes a period of Temporary SUT Exemption on prepared foods, starting at 12:01 am on Thursday, September 22, 2022 and ending at 11:59 pm on Thursday, October 6, 2022. This is one of the affirmative actions we are taking as a government to give relief to citizens, while we continue with the response to the emergency, “said the governor through written statements.

For his part, Parés Alicea explained that the temporary exemption in the payment of the SUT, in addition to prepared foods, includes carbonated beverages, confectionery products and sweets, as defined in Section 4010.01 of the Puerto Rico Internal Revenue Code of 2011, according to amended. It will not be applicable to the sale of alcoholic beverages.

He also added that the determination requires some adjustments in the programming of the merchant collection system and to safeguard the safety of both the merchants and the employees who have to implement these changes, the exemption will begin this coming Thursday once the weather on the island.

It was reported that, in the event that a merchant, by action or omission, charges a consumer the Sales Tax on a sale of Prepared Foods exempt from the payment of said tax by virtue of this Administrative Determination, the merchant will be obliged to immediately reimburse the amount of the Sales Tax charged to the consumer and will be subject to the provisions of Section 4020.08(c) of the Code.

Any breach related to the provisions of this Administrative Determination may be reported through SURI Confidencia on the Department’s website using the link: https://suri.hacienda.pr.gov. DA 22-07 is available on the web page www.hacienda.pr.gov, Publications section.

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