Sales and Use Tax Exemption on Prepared Foods

On March 18, 2020, the Puerto Rico Treasury Department (“Treasury”) issued the Administrative Determination 20-08 (“Determination”) to temporarily exempt certain items acquired by natural persons from sales and use tax due to the COVID-19 emergency. This exemption will be valid from March 20, 2020, until April 19, 2020.

According to the Determination, the sale of the following taxable items to natural persons, as defined by Section 4010.01 of the Puerto Rico Internal Revenue Code, as amended (“PR Code”) will be covered by this temporary exemption:

  • Prepared Foods
  • Confectionery Products
  • Carbonated Beverages
  • Candies


The merchant will report the sale of the above-mentioned taxable items in their Monthly Sales and Use Tax Return as “Sale of Exempt Tangible Personal Property”. Please note the exemption provided by the Determination will not apply to the sale of alcoholic beverages.

Please contact us for additional information or assistance.