Increases consolidated sales taxes from 6% to 7% ahead of introduction of VAT in 2024
Aruba is to raise its BBO turnover tax 1% to 2.5% from 1 January 2023. Combined with the Health Tax, BAZV, this will mean the consolidated sales tax burden will rise to 7%.
VAT will replace the existing 6% combined Turnover Tax (BBO) and Health Tax (BAZV). This is based on support from the OECD on the design of the new indirect tax. This rate will be increased to 7% from 1 January 2023.
Aruba, along with Bonaire and Curaçao are part of the Netherlands. It is largely dependant on tourism. The new tax is being coordinated with the Dutch, who tied the new indirect tax to the funding package provided during the COVID-19 pandemic.
Global inflation concerns pushes introduction of VAT back further year; 1% turnover tax rise in meantime
The Dutch Caribbean dependency has delayed the introduction of VAT several times. The latest postponement was announced based on global inflation worries and the effects of the Russian invasion of the Caribbean.
The average VAT rate for the Caribbean Islands is 16%. Aruba would join the 171 country to introduce VAT.
For regular free updates register for our global VAT and GST news.
