Puerto Rico transitions sales tax reporting from PICO to SURI

Learn more at sovos.com
Puerto Rico
Transition from PICO to SURI
Presented By:
Ramon Frias – Tax Counsel
Antonio Di Benedetto – Director of Tax

Proprietary and Confidential the information and materials in this document are not for use or disclosure outside of Sovos Compliance, LLC. except under express written consent.
2
Housekeeping
• Today’s webinar will last for approximately 45 minutes
• Audio for this event will be available via your PC speakers or telephone
• Please type questions in the questions box – these will be answered
during our Q&A session if there is time
• The webinar recording and slide deck will be provided after today’s
presentation
The information and materials provided in this webinar are for informational purposes only and are not intended as, nor should be
deemed as providing tax or legal advice. Attendees should contact a qualified professional to obtain advice with respect to any
particular topic

3
Agenda
 Movement from PICO to SURI
 New Registration Requirement
 New Information Reporting
 Sales Tax Reporting Changes
 Registration Certificate Change
 What are Implications to Taxpayers
 COFIM – Local Reporting

Movement from PICO to
SURI

5
Movement from PICO to SURI
Overview
• Portal Integrado del Comerciante (PICO)
 Puerto Rico Commonwealth sales/use tax reporting system
 Sistema Unificado De Rentas Internas (SURI)
 Puerto Rico Commonwealth tax reporting system
 First phase Sales/Use tax
 Later phases include income, payroll, other taxes.
 Phase I – Effective for October sales/use tax filings in November 2016.

6
System SURI Integrates
SURI
PICO
Sales
Tax
Online
Services
System
Bev/
Licenses
Special
Laws
REFO
(Ind Tax
Returns)
Case
Managem
ent (Audit
Selection)
Audit
SAF
(Audit)
PRITAS
(Corp
Income)
Virtual
Income
Tax
Collector

7
Important Dates for Transition
 October 15, 2016 - SURI launched.
 October 28, 2016 - PICO decommissioned.
 October 28 –October 31, 2016 - Both systems unavailable.
 November 10, 2016 - First filings using SURI due.
 November 20, 2016 - Second set filings due.
 November 20, 2016 - SURI registration needs to be completed.

New Registration
Requirement

9
New Registration Requirement
SURI Registration Process
 Website to commence registration https://suri.hacienda.pr.gov/_/
 Allows for English translation (top right)
 https://www.youtube.com/watch?v=Z92GBjlQTeo

10
 Registration process begins with logging in using PICO username and password
 Presume user is registered, if not you would create a new profile.
The taxpayer would select if they are a:
 Registered merchant (previously filed in PICO)
 You are a registered merchant with the Treasury Department and will log into SURI
for the first time.
 New Merchant (never previously filed)
 Start a new business or you are an Authorized Representative registering a new
business.
 Representative or Authorized Agent
 An external counsel, CPA, or employee of an active merchant in PICO that will log into
SURI for the first time.

11
Registered merchant (previously filed in PICO)
 Need your taxpayer registration number and PIN from PICO
 Confirm personal information imported from PICO to SURI
 Preferred method of communication (cell, email, phone)
 Requirement for security question
 Review business registration that are imported.
 Determine legal entity name and status/type (C Corp.) and identification.
 Verify various portions of address information.
 Confirm import/export status of goods and frequency.

12
SURI Registration Process (Cont.)
Registered merchant (previously filed in PICO)
 Closing period of accounting
 Financial information – accounting method and system
 Payment Methods & Frequency (Cash, Credit/Debit Cards, Checks)
 Collection Mechanism (POS, Electronic Billing, Manual Billing)
 Certificate used in Business (merchant, mobile, exhibitor, temp business, provisional)
 Additional location information (what are providing good/service, etc sales volume
from location.
 You must select at least one NAICS code for your business (various allowed)
 Then confirm information and submit.

New Information
Reporting

14
New Information Reporting
Sales per location
 Previously report sales per legal entity.
 Revised requirement is to report sales by locations in Puerto.
 Three categories of location information:
1. Taxable sales;
2. Exempt sales;
3. Returns.
 Allows for better traceability of revenue by locality to prevent fraud.

15
New Information Reporting

Sales Tax Reporting
Changes

17
Sales Tax Reporting Changes
 Previously Puerto Rico maintained the following three forms for sales/use tax
reporting:
1. 2915 A, Monthly Sales and Use Tax Return (10.5%)
2. 2915 F, Special Monthly Sales Tax Return (4%)
3. 2915 E, Qualified Pre-Existing Contracts (6%)
 Puerto Rico introduced a new return
 2915, Monthly Sales and Use Tax Return
 Consolidates all of the above reporting into this one new return.
 Does not include the sales/use tax on imports.
 Requires new information reporting by location.

18
 2915, Monthly Sales and Use Tax Return (cont.)
 User can manually enter taxable and exempt sale by location.
 Template can also be utilized to upload reporting by location in SURI.
 SURI system aggregates and consolidates location information amounts
onto main return.
 The location information only relates to sales not purchases.
 Expanded payments methods to include credit/debit cards.
 Due date remains the 20th of the month.

19
 2915 D, Tax on Imports Monthly Return.
 The Hacienda is revising this form for the October filing period.
 The Hacienda has streamlined and re-ordered the lines on the return.
 Combined existing exemption lines onto line 3 with subparts.
 Due Dates still remains the 10th of the Month.

20
Due Dates
Previously guidance
 If due date fell on a weekend or holiday, the return and payment would
need to be provided on that day, so practically it would be due the previous
business day.
Revised guidance
 If due date falls on a weekend or holiday, the deadline for filing the return
would be extended to the next business day. (Awaiting clarification on
payment)

Registration Certificate
Change

22
Registration Certificate Change
Registration Certificate
 Utilized as a resale certificate for local 1% sales and use tax.
 Once SURI registration is complete you will receive an online
registration certificate.
 If a taxpayer had different business activities you needed a
certificate for each activity.
 In the revised registration certificate there is a consolidation of the
various activities on one certificate leveraging NAICS codes.
 Provides level of fraud prevention for sales and purchases for resale.

23
Registration Certificate Change

Implications to taxpayers

25
What are implications to taxpayers
 Taxpayers have to ensure they have logged into PICO and retrieved
relevant information prior to site decommission.
 Taxpayers have to update calculation engine to associate location
information for Puerto Rico transactions.
 Taxpayers should file Puerto Rico 2915D, Tax on Imports Monthly Return.
 Taxpayers should register their organization(s) in the SURI system and
retain a copy of the new registration certificate.

26
What are implications to taxpayers
 Taxpayers should associate location information to Puerto Rico
transactions for purposes of reporting October 2016 sales/use tax filings.
 Taxpayers should ensure that you are utilizing the appropriate state level
form for reporting (revised Puerto Rico 2915, Sales and Use Tax Return).
 In reporting solution, taxpayers should ensure that the new Puerto Rico
Form is set up and locations are configured; before commencing reporting
process.
 In reporting solution, taxpayers should ensure that credits have carried
over to the new return.

28
COFIM – local reporting
• This has no implication to local reporting.
• This is only state level sales and use tax that is implicated.
• Taxpayers should continue to report municipal sales tax to the
COFIM.

Thank you for viewing:
Puerto Rico
Transition from PICO to SURI
Presented By:
Ramon Frias – Tax Counsel
Antonio Di Benedetto – Director of Tax

Puerto Rico transitions sales tax reporting from PICO to SURI

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

En vedette

En vedette (18)

Similaire à Puerto Rico transitions sales tax reporting from PICO to SURI

Similaire à Puerto Rico transitions sales tax reporting from PICO to SURI (20)

Plus de Sovos

Plus de Sovos (13)

Dernier

Dernier (20)

Puerto Rico transitions sales tax reporting from PICO to SURI