“Sales Tax” for professional services – October 1st is the date
To all business owners out there, a reminder that October 1, 2014 marks the activation of the sales tax for most professional services, and as of the date of this writing it includes legal services. While a strong effort is being carried forward to exclude legal services from the sales tax by September 30th, it is not clear if those efforts would be succesful.
Other than lawyers, most professionals are mandated to begin collecting sales tax as of October 1st at the rate of 4%.
It this post comes as a surprise to you and you own some type of business in Puerto Rico or which delivers to others in the island, then yo need to move quickly to understand how the above may impact your business and your tax liability.
Santiago F. Lampón