ARUBA: Breaking news – Introduction of BBO on import

November 16, 2022

Since the announcement of the Plan di Impuesto 2023, replacing the broader integral Reforma Fiscal, the government of Aruba has yet to provide parliament with the proposed legislation. Despite the absence of legislation, the government has recently provided parliament with an adjustment to the budget 2023 of the Land Aruba. In these adjustments, the government has indicated that they will introduce the levy of BBO/BAVP/BAZV upon the import of goods per June 1, 2023. 

Aruba will not introduce a VAT (Value Added Tax) system per January 1, 2023 but will introduce the levy of BBO/BAVP/BAZV upon import of goods per June 1, 2023, allowing for a refund of the BBO/BAVP/BAZV for entrepreneurs when they import trade goods (goods to be sold on to other entrepreneurs or individuals in Aruba). 

The levy of BBO/BAVP/BAZV upon import of goods will eliminate the distinction of the costs of importation of goods by residents of Aruba directly from abroad as opposed to buying these goods from local entrepreneurs since the latter need to impose BBO/BAVP/BAZV upon the sale of goods, whereas the foreign companies are in essence exempt from these charges. By introducing a refund of the BBO/BAZV/BAVP upon trade goods, the tax costs between local traders and foreign companies are essentially the same.  

It is unclear how the term “trade goods” will be defined and whether for instance, the refund will also apply to goods that are processed before selling them locally. The explanatory notes refer to shops and supermarkets, so it is unclear whether there will be a possibility of a refund by other resident traders, such as wholesalers and restaurants. 

HBN Law and Tax will be happy to assist you with any queries regarding the BBO/BAZV/BAVP upon import and the applicable refund system and we will inform you if any other information regarding this or other elements of the Plan di Impuesto 2023 becomes available. 

Contact 

In case you wish to receive further information or discuss your tax position, kindly contact one of our tax advisors.  

Wendell Meriaan
wendell.meriaan@hbnlawtax.com
+(297) 588 6060 

 Jorik Julsing
Jorik.julsing@hbnlawtax.com
+(297) 588 6060 

 Indrah Maduro
indrah.maduro@hbnlawtax.com
+(297) 588 6060 

Francois Simon
francois.simon@hbnlawtax.com
+(297) 588 6060