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 1045 - Deduction, Credit and Refund (§§ 32121 — 32130) › § 32124 - Credit for taxes paid by a reseller

(a) Credit claim and limitation.—
(1) Any registered merchant who holds a reseller certificate, in accordance with the requirements of subsection (c) of this section, may claim a credit for the sales tax paid for the purchase of taxable items for resale.
(2) The credit may be claimed in the monthly sales and use tax return for the period in which said tax was paid up to a maximum of seventy percent (70%) of the tax liability shown in the return. In order to claim such credit, the merchant shall comply with the documents required by the Secretary through regulations.
(3) The Secretary is hereby authorized to prescribe by regulations or any other method the allowable percentage of credits that are higher or lower than the seventy percent (70%) provided in clause (2) of this subsection, for specific trades taking into account their financial and economic factors.
(4) Once the merchant fully complies with the provisions of § 33242 of this title, he/she may claim, as provided in said section, a one hundred percent (100%)-credit for the amount paid on account of sales and use tax in the purchase of taxable items for sale.
(b) Credit carry-over.—
(1) If the credit provided by this section exceeds the sales and use tax to be paid in the monthly sales and use tax return for the period in which the tax that entitles the merchant to said credit is paid, the excess may be carried over to subsequent monthly sales and use tax returns until it has been exhausted.
(2) Unless the taxpayer establishes to the Secretary, through the documents required by latter, his/her inability to recover, by means of claiming future credits, the amount accumulated and not used, the Secretary may authorize other methods for repayment or use thereof, including a refund.
(c) Reseller certificate.— Any person duly registered as a merchant that acquires taxable items for resale may request a reseller certificate. Such certificate shall be issued by the Secretary with the only purpose of identifying whether or not the reseller may claim the credit established in this section, and not for the reseller to present it to its suppliers. Each certificate issued must be numbered and comply with the provisions of § 33424 of this title, and shall be valid for one (1) year. The Secretary may, at his/her discretion and by a determination to such effects, limit or extend the validity of such certificates. In order to request such certificate, the reseller shall:
(1) Provide a detailed description of the tangible personal property he/she shall acquire for resale in the ordinary course of business.
(2) Have no outstanding debt whatsoever with the Department.
(3) Have filed all of his/her returns, including income tax returns and those related to the sales and use tax.
(4) Provide the statements of volume of business for the payment of the municipal license taxes in all the municipalities where he/she is conducting business.
(5) Meet any other requirements that the Secretary may deem convenient.
(d) The Secretary may revoke the reseller certificate to any person who fails to meet any of the requirements provided in this part. Any person whose reseller certificate has been revoked may, one (1) year after such revocation, request a new certificate of exemption, subject to the requirements established in this section.
(e) The Secretary shall be empowered to make any determination deemed necessary to ensure the effective administration of the tax and full compliance of the provisions of this section. This power of the Secretary shall include a determination not to issue reseller certificates if he/she deems it convenient.
History —Jan. 31, 2011, No. 1, § 4050.04, retroactive to Jan. 1, 2011; June 30, 2013, No. 40, § 45; Jan. 24, 2014, No. 19, § 7.