Starting with the Monthly IVU Return for July 2026, the Puerto Rico Department of the Treasury integrates Municipal IVU filing and payment in SURI for participating municipalities.
In plain terms: for most municipalities, merchants no longer file a separate municipal return outside SURI. Municipal information is now reported inside the Monthly IVU Return in SURI. But be careful: that does not mean the process became automatic or that you can stop reviewing your numbers.
The change can simplify compliance, but it can also create errors if your business does not have locations properly registered, does not separate sales correctly, or assumes that filing the return means everything is paid. If you need support, see our accounting services in Puerto Rico or request an evaluation.
Starting July 2026, Municipal IVU for participating municipalities is handled in SURI. The return is filed from the Sales and Use - State account, but the municipal payment is made separately from the Sales and Use - Municipal account.
What changed with Municipal IVU in SURI
Before, many merchants handled the state portion of IVU in SURI and the municipal portion through COFIM or separate municipal processes. With the integration, Treasury receives and processes Municipal IVU information and payments in SURI for 73 participating municipalities.
The goal is a more uniform process. But the merchant remains responsible for correctly reporting sales, validating locations, and paying the state and municipal IVU that applies.
Important dates
| Date or period | What happens |
|---|---|
| July 1, 2026 | SURI shows separate Sales and Use accounts: one state and one municipal. |
| July 2026 period | First period to which Municipal IVU integration in SURI applies for participating municipalities. |
| August 1, 2026 | The new Monthly IVU Return and municipal account will be available for July 2026 transactions. |
| August 20, 2026 | General deadline to file and pay the July 2026 Monthly IVU Return. See the tax calendar. |
Who this change applies to
This mainly applies to merchants who:
- File the Monthly IVU Return in SURI.
- Have one or more business locations in Puerto Rico.
- Collect IVU on sales of goods, taxable services, or admissions.
- Have exempt sales that must be reported.
- Handle inventory, self-consumption, or inventory use.
- Have locations in more than one municipality.
- Operate in both participating and non-participating municipalities.
It may also affect businesses with internet sales, sales not attributable to a specific location, multilevel businesses, imports for use, and reseller merchants.
Non-participating municipalities: these do not work the same in SURI
Not all municipalities participate in the consolidated process. Treasury identified these as non-participating:
- Bayamón
- Carolina
- Guaynabo
- Mayagüez
- San Juan
If you have a location in one of these municipalities, do not assume SURI resolved everything. That location is reported in SURI for state purposes, but Municipal IVU for that municipality must be handled directly with the municipality under its form, platform, or procedure.
Simple example
A merchant has a location in Ponce and another in San Juan.
The Ponce location enters SURI's consolidated process because Ponce is a participating municipality. The San Juan location is reported on the Monthly IVU Return for state purposes, but San Juan Municipal IVU must be fulfilled directly with San Juan.
This matters because a merchant with multiple locations might think they are fully compliant after filing in SURI, when they still owe the municipal portion for a non-participating municipality.
The two new Sales and Use accounts in SURI
With this change, the Sales and Use account in SURI splits into two:
1. Sales and Use - State
This is the main account. From here the merchant continues most IVU transactions, including:
- Filing the Monthly IVU Return.
- Amending the Monthly IVU Return.
- Obtaining copies of filed returns.
- Paying state IVU.
- Updating the Merchant Registry.
- Adding, correcting, or closing locations.
2. Sales and Use - Municipal
This account is used to reflect and pay the balance for Municipal IVU of participating municipalities.
Key point: this account is not used to file or amend the Monthly IVU Return. The return is filed from the state account. Then the municipal balance is paid from the municipal account.
The most common trap: filing is not paying
This is probably the most dangerous mistake.
A merchant can file the Monthly IVU Return correctly and still owe money if the corresponding payments are not made. Starting July 2026, state IVU and Municipal IVU are paid separately.
After filing, verify:
- The state balance in Sales and Use - State.
- The municipal balance in Sales and Use - Municipal.
- That both payments were made for the correct period.
- That you saved filing and payment evidence.
If you do not pay Municipal IVU in full, the pending balance will remain in SURI and may accrue interest, surcharges, and penalties. To understand consequences of late filing, read our guide on late IVU in Puerto Rico.
Do you have multiple locations or non-participating municipalities? We can review your SURI account, validate locations, and prepare your monthly IVU reconciliation before the deadline.
How Municipal IVU is paid now
Municipal IVU for participating municipalities is paid as a single total debt in SURI. You do not make individual payments per participating municipality.
For example, if the system determines $400 of Municipal IVU for the period, that balance appears in Sales and Use - Municipal. The merchant makes one payment for the total, and SURI internally distributes it among participating municipalities.
You also cannot choose for a partial payment to apply to a specific municipality. If you pay partially, SURI applies that payment proportionally among participating municipalities included in the return.
The new Monthly IVU Return
The new version of the Monthly IVU Return includes additional municipal information. Treasury added three important schedules:
| Schedule | Purpose |
|---|---|
| Schedule 7 IVU | Sales Summary by Municipality. |
| Schedule 8 IVU | Inventory Use and Self-Consumption. |
| Schedule 9 IVU | Reconciliation of Tangible Personal Property and Exempt Sales at Municipal Level. |
The return is still filed electronically in SURI. The version on Treasury's website is informational; actual filing is done through SURI.
Why your SURI locations matter so much
SURI will use Merchant Registry information to attribute sales to the correct municipality. If a location is incorrectly registered, missing, or has the wrong municipality, Municipal IVU may be misreported.
Before filing July 2026 IVU, review:
- That all active locations are registered.
- That each location's municipality is correct.
- That closed locations have been updated.
- That new locations are added before filing.
- That sales are separated by location when applicable.
This is not bureaucracy. If the location is wrong, the municipal report is wrong.
Quick guide: what to review in SURI before filing
Before preparing the return
- Log into SURI and review Sales and Use - State.
- Verify the Merchant Registry.
- Confirm active locations.
- Identify any location in Bayamón, Carolina, Guaynabo, Mayagüez, or San Juan.
- Separate taxable sales, exempt sales, and sales to resellers.
- Review inventory use or self-consumption.
- Check for imports for use.
When preparing the return
- Use the new Monthly IVU Return version applicable from July 2026.
- Report information by location.
- Complete applicable schedules.
- If using the Return Template, download the latest version from SURI for that period.
- Do not use old templates.
After filing
- Save the filing confirmation.
- Review the state balance.
- Review the municipal balance.
- Pay state IVU from Sales and Use - State.
- Pay Municipal IVU from Sales and Use - Municipal.
- Save evidence of both payments.
- Verify whether you still must file or pay directly to a non-participating municipality.
Common mistakes that can cost merchants money
1. Assuming SURI calculates everything without review
SURI can group information, but it depends on the merchant having locations properly registered and entering correct data.
2. Filing the return and forgetting the municipal payment
Filing does not replace payment. The merchant must pay state and municipal portions separately.
3. Ignoring non-participating municipalities
Bayamón, Carolina, Guaynabo, Mayagüez, and San Juan require separate attention for Municipal IVU.
4. Using an old Return Template
An old template can cause upload errors or prevent the return from completing correctly.
5. Not reconciling sales by location
If you have more than one location, you need a clear reconciliation. Total sales alone are not enough. For applicable rates, see IVU 4% vs 11.5%.
6. Not keeping evidence
Keep a copy of the filed return and evidence of state and municipal payments. If a difference appears later, those documents are your first line of defense.
Credits, adjustments, and overpayments
For the state portion, the Monthly IVU Return may continue recognizing certain state credits when the merchant meets applicable requirements.
But for Municipal IVU, Treasury indicated that Act 72-2025 does not grant authority to recognize, approve, or grant credits against that portion of the tax. In simple terms: Municipal IVU determined on the return must be paid as determined.
If there are overpayments in the municipal account, they may apply against municipal balances for periods after July 2026, per SURI operation and applicable procedures.
For periods before July 2026, any claim, adjustment, or benefit related to Municipal IVU is handled directly with the corresponding municipality or under the prior applicable procedure.
Frequently asked questions about Municipal IVU in SURI
Did Municipal IVU disappear?+
No. Municipal IVU still exists. What changed was the process to report and pay it in participating municipalities.
What is the Municipal IVU rate?+
The general municipal rate is 1%. On ordinary taxable sales, this portion is added to the state IVU portion.
Do I need a separate municipal return with COFIM for participating municipalities?+
For periods from July 2026 onward, no. Municipal information for participating municipalities is reported within the Monthly IVU Return in SURI.
Where do I file the Monthly IVU Return?+
From the Sales and Use - State account in SURI.
Where do I pay Municipal IVU?+
From the Sales and Use - Municipal account in SURI.
Can I pay by municipality separately?+
Not for participating municipalities. Municipal IVU is paid as a single total debt. SURI handles internal distribution.
What if I have a location in San Juan?+
You report the location in SURI for state purposes, but San Juan Municipal IVU is fulfilled directly with the Municipality of San Juan under its procedure.
Do state credits reduce Municipal IVU?+
No. State credits apply against the state portion. Municipal IVU must be paid as determined on the return.
What if I do not pay Municipal IVU in full?+
The pending balance will remain in Sales and Use - Municipal and may accrue interest, surcharges, and penalties. It may also appear on Treasury's Debt Certification.
Recommendation for merchants
Do not wait until the 20th to discover a location is incorrectly registered or that you must handle a non-participating municipality separately.
This change can simplify filing, but only if your information is clean. If sales are not separated by location, you have old SURI records, or you operate in more than one municipality, review before filing.
A good monthly reconciliation should connect:
- POS or billing system sales.
- Taxable sales.
- Exempt sales.
- Sales by location.
- State IVU collected.
- Municipal IVU.
- Payments made in SURI.
- Filing and payment evidence.
Need help with IVU, SURI, or your Merchant Registry?
At SL Accounting Services PR we can help you review your SURI account, validate locations, prepare monthly IVU reconciliation, and file correctly under the new process.
If you have multiple locations, exempt sales, inventory, imports, or non-participating municipalities, it is better to review before filing. A small SURI error can become debt, penalties, or municipal differences.
Schedule a consultation and we will review your case before the next deadline. Request an evaluation.
- · Puerto Rico Department of the Treasury, Internal Revenue Circular Letter No. 26-13, Municipal IVU Integration in SURI.
- · Puerto Rico Department of the Treasury, Monthly IVU Return, Form SC 2915.
- · Puerto Rico Department of the Treasury, Internal Revenue Information Bulletin No. 26-02.
- · Puerto Rico Department of the Treasury, Administrative Determination No. 14-25.