On 21 December 22, Aruba’s parliament approved legislation for the 2023 tax plan. The main measures include the following:
- The turnover tax (BBO) rate is increased from 1.5% to 2.5%, which when combined with the health tax (BAZV) and additional funding tax for public private partnership projects (BAVP), results in a total turnover tax rate of 7%;
- The place of supply rules are amended to provide that electronic services and telecommunication services are supplied where the customer resides or is established, instead of the place of the supplier, meaning that foreign suppliers are responsible for turnover taxes unless the reverse charge mechanism applies; and
- New rules are introduced for the appointment of a tax representative in Aruba by foreign suppliers without a permanent establishment in Aruba, in order to meet their tax obligations.
The measures generally apply from 1 January 2023.
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