Aruba – Introduction of BBO on import

Aruba – Introduction of BBO on import

June 13, 2023

Since the announcement of the Plan di Impuesto 2023, replacing the broader integral Reforma Fiscal, the government of Aruba has recently introduced their Tax Plan 2023 – part 2, introducing the levy of BBO/BAVP/BAZV upon import of goods per July 1, 2023

Aruba will not introduce a VAT system but will introduce the levy of BBO/BAVP/BAZV upon import of goods per July 1, 2023, allowing for a credit of the BBO/BAVP/BAZV for entrepreneurs when they import trade goods.

Trade goods are currently defined as goods to be sold to other entrepreneurs or individuals in Aruba. The Minister of Finance has to provide further guidance in a National Decree. This National Decree has yet to be provided, but in the Explanatory Notes with the introduction of this legislation, the government has explained that “trade goods” are deemed to be goods sold without any further processing of these goods.
The Explanatory Notes specifically exclude goods imported by restaurants and hotels but does include the sale of goods in situations where the entrepreneur uses goods, but also sold to third parties (for instance shampoo at a hair salon). It is unclear what activities are included in the definition of “processing” goods.

Although 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, the introduction will lead to additional costs for other entrepreneurs who are not able to deduct the BBO/BAVP/BAZV upon import.

If the credit of BBO/BAVP/BAZV on goods imported exceeds the amount of BBO/BAVP/BAZV payable in any month, the entrepreneur will be able to receive a refund of the amount of credit exceeding the amount payable. Unfortunately, the legislation does not provide for a time within which the refund assessment needs to be provided by the tax authorities, nor the possibility to appeal against the refusal to provide this assessment in time.

The BBO/BAVP/BAZV levied upon import of goods will be collected by the customs department upon import of the goods based on the system and tax identification numbers used by the customs department, whilst the credit and possible refund are processed by the tax authorities. In case of a fiscal unity for BBO purposes, the entity filing the refund return may differ from the entity importing the goods. The legislation is unclear on how the tax authorities will assess these credit returns.

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.


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

Wendell Meriaan
+(297) 588 6060

Jorik Julsing
+(297) 588 6060

Indrah Maduro
+(297) 588 6060


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