Puerto Rico – VAT/Sales Tax Update May 23, 2016 Answers Expected This Week

SALT Report 3809 – On Friday, the Governor issued his veto to the Substitute Bill to HB 2032, HB 2838, HB 2839 and HB 2840.

In order for House and Senate to override the veto, they need a 2/3 majority vote. The House is expected to vote today and Senate on Thursday.

With this, as of today, the VAT continues to be statutorily on track for implementation on6/1/16.  The public discussion that has ensued from Friday until today points to a probable overriding of the veto at some point this week.  Therefore, it is likely that by Friday this week, after the Senate’s vote, the VAT is repealed.

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