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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.

Freelancer Services to Invoice

  • Hourly consulting
  • Project-based work
  • Retainer agreements
  • Milestone billing
  • Rush/priority fees

Invoice Requirements in Puerto Rico

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

Payment Terms

Net 14 or Net 30 is standard. Consider 25-50% deposits for larger projects.

Net 30Net 15Due on Receipt2/10 Net 30

Payment Methods in Puerto Rico

Bank TransferACHBanco PopularCredit CardPayPal

Freelancer Invoice Tips

  • Always use a unique invoice number
  • Clearly state payment terms upfront
  • Include detailed breakdown of work
  • Add late payment fees
  • Keep copies for tax purposes

Frequently Asked Questions

What tax rate applies to freelancer 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 freelancers in Puerto Rico?

Common payment methods in Puerto Rico include: Bank Transfer, ACH, Banco Popular, Credit Card, PayPal. Net 14 or Net 30 is standard. Consider 25-50% deposits for larger projects.

What should freelancer invoices include in Puerto Rico?

Your invoice should include: EIN or SSN, Merchant registration, Client details, Invoice number. For freelancer services specifically, also include: Hourly consulting, Project-based work, Retainer agreements.

How do I invoice for hourly freelance work?

List each task with hours worked and hourly rate. Include dates and detailed descriptions.

Should I charge a deposit as a freelancer?

Yes, especially for larger projects. A 25-50% deposit protects you from non-payment.

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.