BBO/BAVP and BAZV Taxes should be incorporated in prices as per October 1, 2019

Dit item is gearchiveerd op 30-10-2019.

ORANJESTAD – The Tax Department of Aruba informs all businesses about the changes for the BBO/BAVP and BAZV turnover tax law.

Per October 1, 2019, there will be two changes regarding the BBO/BAVP and BAZV tax law, namely:

  1. It is unlawful to charge consumers a different price at the cashier than is stipulated on the product or service;
  2. It is unlawful to have the BBO/BAVP and BAZV on the receipts.

To provide commerce with enough time to adapt their pricing according to the new law, the Government of Aruba, with approval of the Minister of Finance, Economic Affairs, and Culture, provided a 9 month transition period.

Available options on invoice in connection of the change in the BBO, BAZV and BAVP turnover tax.Meanwhile, many meetings were held with stakeholders and as a result hereof, the Minister announces the following decision, which is valid as per October 1, 2019:

  1. All businesses should have one price per service/product and are not allowed to charge a different amount at the cashier. If an item is priced at Afl. 50,00 in the store, the client must be charged Afl. 50,00 at the cashier and nothing more. The law introduced in January 2019, is valid.
  2. It is permitted to mention the 6% tax and the correct amount of BBO/BAVP and BAZV on the receipt. The calculation of each tax is not allowed on the receipt or bill. It should be clear that it is not allowed to appear on the receipt or bill as it currently does. Any other percentage or tax amount that does not reflect the legal tax of the combined 6%, is not allowed.

Commerce is authorized to mention the taxes on the receipts or bills but is not obligated to do so. Should commerce decide to indicate these it should only be as specified and approved by the Government. See graphic for available options.

It is important to state that the BBO/BAVP and BAZV taxes are revenue taxes. Revenue is the total amount a business receives for the sales of product or service provided. The amount of BBO/BAVP and BAZV they charge to their clients are also included in the revenue.

Conclusion 

Per October 1, 2019, commerce should only charge store marked prices and nothing extra upon paying and they are permitted to mention these taxes on their receipts or bills. Only the 6% tariff and corresponding amount are allowed on the receipts or bills.

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