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Puerto Rico Governor Veto of VAT Repeal Overridden

31 May 2016

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Approved Changes

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Puerto Rico

On 26 May 2016, Puerto Rico's Senate voted to override Governor Alejandro Garcia Padilla's veto of legislation to repeal the change from sales and use tax (SUT) to value added tax (VAT). The veto was overridden by the House of Representatives on 23 May. The legislation to repeal the change to VAT was passed on 5 May 2016, and vetoed by the Governor shortly thereafter. With the veto overridden in both houses, the change to VAT will no longer apply from 1 June 2016 as planned (originally to apply 1 April). However, certain aspects of the transition to VAT will...