IVU holiday for school-related purchases set for Friday & Saturday
Treasury Secretary Francisco Parés Alicea
By THE STAR STAFF
Treasury Secretary Francisco Parés Alicea announced Tuesday that the second sales tax holiday, during which school uniforms and supplies are exempted from the sales and use tax (IVU by its Spanish acronym), will be on Friday and Saturday, Jan. 13-14.
“Uniforms and school supplies will be available free from payment of the IVU, starting at 12:01 in the morning of this Friday, January 13, until midnight on Saturday, January 14,” Parés Alicea said. “We urge parents and guardians of students to set aside the dates and benefit from the exemption.”
Section 4030.20(b) of the Puerto Rico Internal Revenue Code of 2011 exempts school uniforms and materials from payment of the IVU, as defined in that section, for two days in July and two days in January.
On this occasion, the start of classes was close to the Jan. 6 Three Kings Day festivities. However, the Retail Trade Association members agreed with the days determined for IVU-exempt sales after the holidays because, according to what they indicated, the second school semester mainly involves substitution purchases.
The clothing and footwear required by the educational institution, which does not replace ordinary clothing, are considered school uniforms. Therefore, the exemption does not include separately sold pieces such as belt buckles, patches and emblems.
The materials included in the IVU holiday are school materials, art and music materials, instructional materials purchased at retail, and computer storage media, such as disks, compact discs, and memory storage devices (flash drives).
Pocket and plain folders, school bags, calculators, adhesive tape, chalk, compasses, crayons, erasers, accordion folders, and expandable, plastic and manila envelopes will also be exempted from the IVU. Glues, markers, cards or index cards and their storage boxes, lunch boxes, pencils and sharpeners, pens, scissors and rulers, among other school supplies, are also exempted.
The complete list of exempt materials is available in Internal Revenue Memorandum No. 22-10, https://hacienda.pr.gov/publicaciones/carta-circular-de-rentas-internas-num-22-10- cc-ri-22-10.
All print and electronic books (digital, cyberbooks or ebooks) are exempt from paying the IVU throughout the year, and the exemption applies to both purchase and rental. In addition, notebooks purchased at retail, regardless of their size, are exempt from the IVU payment throughout the year.
Sales under layaway plans, vouchers (rain checks), by mail, telephone, mail or internet, and with certificates and gift cards, qualify for the exemption as long as the item is paid for and delivered during the established period of the IVU holiday.