2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART V - Sales and Use Tax (§§ 32001 — 32171) › Chapter 1043 - Exemptions (§§ 32051 — 32071) › § 32052 - Certificate of exemption and certificate of eligible reseller

(a) Any manufacturing plant or eligible reseller, as defined in this section may, subject to meeting the requirements established by the Secretary, request a certificate of exemption from the sales and use tax or a certificate of eligible reseller, that exempts him/her from the payment of the sales and use tax with respect to the purchase of taxable items for sale to persons that may acquire the taxable item exempt from sales and use tax as provided in §§ 32051–32071 of this title or for export, as appropriate.
(b) Every certificate of exemption or certificate of eligible reseller issued must be numbered. Certificates of exemption shall be valid for three (3) years and certificates of eligible reseller shall be valid for one (1) year. The Secretary, at his/her discretion, may determine whether to limit or extend the validity of such certificates.
(c) The Secretary may revoke the certificate of exemption from the sales and use tax or certificate of eligible reseller of any person who fails to meet any of the requirements provided in this part. Any person whose certificate of exemption or certificate of eligible reseller has been revoked may, one (1) year after such revocation, request a new certificate of exemption or certificate of eligible reseller, subject to the requirements established in this section.
(d) When requesting a certificate of exemption or a certificate of eligible reseller, merchants, to the extent applicable, shall submit to the Secretary the following:
(1) Evidence that he/she is a merchant eligible to obtain a certificate of exemption or is the holder of some exemption as established in this part;
(2) evidence that he/she is duly registered in the Registry for Merchants; and
(3) in the case of an eligible reseller, he/she shall provide a detailed description of the tangible personal property he/she shall buy for resale to persons that may acquire such taxable item exempt from the sales and use tax as provided in §§ 32051–32071 of this title or for export; and
(4) evidence that he/she has no outstanding debt whatsoever with the Department;
(5) evidence that he/she has filed all returns, including income tax returns, and those related to the sales and use tax; and provides the statements of volume of business for the payment of the municipal license fees in all the municipalities where he/she is conducting business.
(6) In the case of a new business:
(A) An estimate of the volume of sales during the first two (2) years of operations, indicating the portion of such volume that constitutes sales to persons that may acquire such taxable item exempt from the sales and use tax as provided in §§ 32051–32071 of this title or for export (“eligible sales”), and
(B) at the request of the Secretary, a bond for his/her approval and acceptance, in an amount that shall not be less than the amount resulting from multiplying the volume of eligible sales during the first year of operations by seven percent (7%).
(7) In the case of an existing business:
(A) A report showing the volume of sales during the three (3) years immediately preceding the date of the request, or applicable period, indicating the portion of such volume that constitutes eligible sales, and
(B) at the request of the Secretary, a bond for his/her approval and acceptance, in an amount that shall not be less than the amount resulting from multiplying the volume of eligible sales during the three years immediately preceding the date of the request by seven percent (7%).
(e) The Secretary may require a person to furnish documents and evidence of his/her organizational structure, certifications of tax debts, or any other information or document needed during the review process ordered by this section.
(f) Definitions.—
(1) New business.— For purposes of this section, the term new business means any business that has been carrying out operations for less than one (1) year.
(2) Eligible reseller.— For purposes of this section, an eligible reseller is a duly registered merchant who acquires taxable items mainly to sell them to persons that may acquire them exempt from the sales and use tax as provided in §§ 32051–32071 of this title or for export. For these purposes, the term “mainly” means that during the three (3) taxable years immediately preceding the year of determination, an average of eighty percent (80%) or more of the items withdrawn from inventory by the merchant has been sold to persons that may acquire such taxable items exempt from the sales and use tax as provided in §§ 32051–32071 of this title or for export.
History —Jan. 31, 2011, No. 1, § 4030.02, retroactive to Jan. 1, 2011; June 30, 2013, No. 40, § 37.