Here are a few crucial points:

  1. Aruba is a separate country within the Kingdom of the Netherlands, but falls under the EU for certain aspects. It’s important to know how Aruba applies VAT rules in that context.
  2. What about the tax on services and goods? In this case, Aruba is not part of the free movement of goods and services within the EU.
  3. Therefore, you must treat the country as a non-EU country. Local rules must be observed.
  4. When providing services, VAT rates differ for exports compared to products. This depends on whether the customer can reclaim VAT (i.e., has a VAT number). A. If the customer does not have a VAT number: You must register with the tax authority of that country. Make sure to include the correct local VAT rate on the invoice, and pay the VAT in Aruba. B. If the customer does have a VAT number: Apply 0% VAT on the invoice. However, it is important to check with the local authorities whether you must file a tax return. In most cases, this is not required.

Conclusion VAT in Aruba:

  1. Register with the "Departmento di Impuesto" (Aruba Tax Authority). Make sure you understand Aruba’s VAT procedures.
  2. File tax returns for the BBO (“Belasting op Bedrijfsomzetten” or turnover tax) or apply for tax exemption.
  3. Issue invoices stating the BBO. In the Netherlands, the income remains taxable, but the BBO is payable in Aruba.

 

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