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Avalara Help Center

Set Up Puerto Rico Returns

This article applies to:Returns Central

Tell Us Where You Collect Tax

Add Puerto Rico to the places where you collect tax. This tells AvaTax to calculate tax on Puerto Rico transactions. See the Puerto Rico Departamento de Hacienda website for details about nexus, registration, and taxes in Puerto Rico.

Before you add Puerto Rico, there are two things you need to do:

You don't have to select a tax type for Puerto Rico.

Puerto Rico's Sales and Use Tax ("Impuesto sobre Ventos y Uso" or IVU) is charged on all sales made to destinations in Puerto Rico. Local tax also applies to all transactions.

  • Transactions originating outside Puerto Rico or from non-physical locations (for example, salespeople) remit local tax on the Puerto Rico return
  • Transactions from physical locations in Puerto Rico remit local tax separately to the local jurisdiction

Add Your Company Locations

Add any physical locations you have in Puerto Rico. This is important for reporting on your returns.

When you add a location:

  • Enter the twelve-digit, state-assigned Merchant's Registration Number under Additional Information
  • Enter the state-assigned Location/Jurisdiction under Additional Information
  • After you validate the location address, make sure it falls in the jurisdictions you expect. If not, you may want to manage your jurisdiction overrides

The state-assigned Merchant's Registration Number is the twelve-digit Location ID issued by Puerto Rico. It consists of eight-digits indicating the account with a four-digit suffix indicating the specific location. Example: 12345678-0001 and 12345678-0002 could be two locations on the same account

The state-assigned Location/Jurisdiction is the registration number for the local jurisdiction.

Schedule Your Returns

After you tell us where you collect tax and add locations, you're ready to schedule returns. Go to Returns in AvaTax to provide a funding power of attorney and schedule your returns

Your company name and taxpayer ID from Your Company Details show up on your returns. Make sure they match what’s on your registration information.

Use this info to schedule your returns. Keep in mind that the selections you made when you told us where you collect tax, any location codes you entered, and the forms you select are related and should tie together.

Puerto Rico Commonwealth Returns

  • Select form PR Puerto Rico to report all sales and use taxes
    • Make sure you enter your ten-digit Puerto Rico registration ID in the correct format. Example: 12345-67890
    • Enter your username and password for Puerto Rico's SURI website so your return can be filed electronically
    • Please note, if you are using a bond as payment towards imports, Avalara is unable to support the filing of your return as additional actions are required of your business to proceed with this process.

Local Returns

  • Select the return that corresponds to each county where you make sales from a permanent physical location
    • The registration ID format will vary depending on the local government. Enter it exactly as it appears on your registration info.
    • Enter your login information if the local jurisdiction allows electronic filing

Tax Liability Adjustments

In some scenarios, you may have adjustments to add to your return to reflect activity that is not able to be captured in your transaction data. In AvaTax, you may navigate to the Tax Details and Adjustments page of a form to add any of the following adjustment types.

Puerto Rico Commonwealth Returns

  • Prior Payment
    • If you have a requirement to remit prepayments on your return, this adjustment type utilizes the payments you have already made in advance of the current filing.
  • Jurisdiction Issued Credit
    • If you have an overpayment on your state account, usually due to overpaid taxes or paid penalties/interest that were later waived, you may use this adjustment to apply that overpayment to reduce the Amount Due to Avalara and Payment to Jurisdiction.
  • Credit for Taxes Paid on Imports
    • If you have paid taxes on imported products, you may use this adjustment to apply that payment amount and reduce the Amount Due to Avalara and Payment to Jurisdiction.

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