Gov’t suspends IVU on prepared foods for 2 weeks

By The Star Staff

Gov. Pedro Pierluisi Urrutia on Tuesday announced the temporary exemption of the sales and use tax (IVU) on prepared foods starting Thursday.

“As part of the measures we have taken in favor of our people in the face of the emergency caused by the passage of Hurricane Fiona, I asked the secretary of the Department of the Treasury, Francisco Parés Alicea, to issue Administrative Determination 22-07, which establishes a Temporary IVU Exemption period on prepared foods, beginning at 12:01 a.m. on Thursday, September 22, 2022, and concluding at 11:59 p.m. on Thursday, October 6, 2022,” the governor said.

Parés Alicea noted that the temporary IVU exemption includes, in addition to prepared foods, carbonated beverages, pastries and candy, as defined in Section 4010.01 of the Puerto Rico Internal Revenue Code of 2011, as amended. It does not apply to the sale of alcoholic beverages.

Parés Alicea added that the determination requires some adjustments in the programming of stores’ tax collection systems. If a merchant, by action or omission, collects the IVU from a consumer on a sale of prepared foods, the merchant must immediately refund the amount and will be subject to the provisions of Section 4020.08(c) of the code.

Any noncompliance related to the provisions of the administrative determination can be reported through SURI Confidencia on the Treasury Department’s web page using the link: https://suri.hacienda.pr.gov. DA 22-07 is available on the web page www.hacienda.pr.gov, Publications section.

The island Family Department, meanwhile, announced Tuesday during the government’s daily press conference that all participants in the Nutritional Assistance Program can use their benefits in official establishments to purchase hot meals until Sunday, Sept. 25.