Product and service pricing:
Merchants are required by law to pay BBO, BAVP and BAZV to the Tax Ofice, however they are not required by law to charge these taxes to the client. They should be able to absorb these expenses as the tax law is a turnover tax and not a sales tax. In the event merchants won’t absorb these tax fees, as per January 1 2019, they are forced by law to include these taxes into their product and service prices. This means merchants are prohibited to offer prices that exclude these taxes. All product and service prices are final and cannot differ at the cashier. Hence the price one sees on the product must be the same one pays at the cashier.
Invoices and Receipts:
Since January 1st, 2019 the law prohibits the publication of the BBO, BAVP and BAZV taxes on any receipt and invoice.
In order provide merchants with adequate time to adjust their POS systems, the Government is issuing a 6 month transition period. This transition period is valid up to June 30th 2019. On July 1st 2019, the second phase of the fiscal reform will become effective; merchants should execute the tax laws as indicated with no exceptions.
In the event merchants do not comply with the prohibition mentioned, a fine of up to Afl. 10.000,- can be imposed by the Tax inspector.