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Puerto Rico Tax Information

11.5% SUT

SUT (Sales and Use Tax) is 11.5% (10.5% state + 1% municipal). US federal tax applies. EIN or SSN required.

Contractor Services to Invoice

  • Labor charges
  • Material costs
  • Equipment rental
  • Permit fees
  • Subcontractor work
  • Change orders
  • Warranty work

Invoice Requirements in Puerto Rico

EIN or SSN
Merchant registration
Client details
Invoice number
SUT breakdown
Total in USD

Payment Terms

Progress billing at milestones. Retain 5-10% until final inspection.

Net 30Net 15Due on Receipt2/10 Net 30

Payment Methods in Puerto Rico

Bank TransferACHBanco PopularCredit CardPayPal

Contractor Invoice Tips

  • Break down materials and labor
  • Reference permits
  • Document change orders
  • Include lien waiver language
  • Track progress payments

Frequently Asked Questions

What tax rate applies to contractor invoices in Puerto Rico?

Puerto Rico has 11.5% SUT. SUT (Sales and Use Tax) is 11.5% (10.5% state + 1% municipal). US federal tax applies. EIN or SSN required.

What payment methods are common for contractors in Puerto Rico?

Common payment methods in Puerto Rico include: Bank Transfer, ACH, Banco Popular, Credit Card, PayPal. Progress billing at milestones. Retain 5-10% until final inspection.

What should contractor invoices include in Puerto Rico?

Your invoice should include: EIN or SSN, Merchant registration, Client details, Invoice number. For contractor services specifically, also include: Labor charges, Material costs, Equipment rental.

How should contractors bill for projects?

Progress invoicing at milestones. Break down labor, materials, and subcontractor costs.

How do contractors handle material markup?

15-25% markup is standard. State policy in contracts.

What tax applies in Puerto Rico?

Puerto Rico has 11.5% SUT (Sales and Use Tax). As US territory, federal income tax exemptions apply but local taxes exist.