Unofficial translation:
ORANJESTAD – When importing goods, the BBO (General Sales Tax) must be paid at the border along with import duties. The customs value is the basis for this collection. The calculation for this remains unchanged. The same customs value and customs declaration are used as usual. The digital customs system automatically calculates import duties and BBO as soon as the customs value is filled in. There are no associated administrative costs.
Example:
Customs Value: AWG 10,500
BBO 7% of 10,500 = AWG 735
The total BBO paid at customs is AWG 735.
If the import involves commercial goods, at the end of the month, the declaration becomes as follows:
Example:
BBO on sales volume for August 2023: AWG 4,000
Deduct BBO paid at the border: AWG 735
In September, pay BBO at the Tax Department: AWG 3,265 (4,000 – 735).
You can see that the BBO paid at the border is an advance payment on the BBO that needs to be paid at the end of the month. The total amount of BBO to be paid remains the same, which is AWG 4,000. There are no extra expenses. Therefore, BBO is now paid in two parts: the first part at the border (AWG 735) and the second part when making the end-of-month declaration (AWG 3,265). There’s no additional “switch.”
BBO Declaration:
The BBO paid at the border will automatically appear in the BBO declaration. Traders do not need to manage this themselves. The Tax Department provides the necessary information to traders in the BBO declaration.
BBO as Operating Expense:
BBO remains an operating expense, similar to import duties. This means it can be deducted from profits, just like other company expenses. The same applies to the BBO paid at the border for non-commercial products.
Changes in Legislation:
Starting from August 1, 2023, nearly all import duty tariffs have decreased.
Starting from January 1, 2023, income tax and profit tax rates have also decreased.
All these changes imply that taxes have not increased. In other words, lower taxes mean higher profits. More cash in the company’s coffers.
With these changes in legislation, there is no fiscal reason to increase prices for commercial products (trade goods).
Control and Fines:
A trader cannot show their customer one product price on the receipt and present a different price when the customer arrives at the counter. This is against Article 9b of the BBO law. Violating this rule could result in a fine of up to AWG 10,000. The Tax Department’s audit team is authorized to inspect books and will act when necessary, in accordance with the law.
In the coming weeks, the Tax Department will provide more detailed information about the BBO at the border and the BBO declaration. It is advisable to refer to frequently asked questions on impuesto.aw. All official news will be published on impuesto.aw and/or the Tax Department’s Facebook page. If you have questions, you can call 522 7424 or 522 7423, or use WhatsApp at 592 8200.
Source: impuesto.aw
