Tax Fraud in The Sales Tax: Zappers – What Are They? How Can Puerto Rico Block Them?

The Sales and Use Tax is an essential part of Puerto Rico’s revenue profile. Effective only recently (November 15, 2006) the Impuesto a las Ventas y Uso (IVU)[1] was expected to raise between $2.3 and $1.05 billion annually,[2] and has already become the Commonwealth’s fourth largest revenue source.[3] Actual revenue results for 2007-2008 came in at $1.1 billion,[4] which admittedly is closer to the low end than the high end…