Indirect taxes in the Dutch Caribbean and Suriname
Indirect taxes in the Dutch Caribbean and Suriname.
In principle all transactions involving supply of goods or rendering of services would be subject to some sort of consumption tax, also referred to as the indirect taxes.
In Curaçao a sales tax regime applies. Sales tax is charged on the supply of goods and the provision of services on Curaçao by businesses as part of their business activities, as well as on imported goods. In specific situations exemptions from sales tax apply. Besides a general rate, there are special rates applicable for insurance services, the provision of accommodation in certain situations and for luxury products and services.
The consumption tax in Aruba and Sint Maarten is the turnover tax, which is slightly different from the sales tax in Curaçao. The turnover that businesses realize through the supply of goods or the provision of services in Aruba or Sint Maarten is in principle subject to this turnover tax. As is the case in other indirect tax regimes certain exemptions apply. Both in Aruba and Sint Maarten a standard fixed rate applies. In addition, in Aruba a special AZV levy is linked to the turnover tax levy.
In the Caribbean Netherlands a general consumption tax applies. The general consumption tax is levied on the supply of goods internally produced by manufacturers, the provision of services and on imported goods. Different standard rates apply on the various islands. The standard rate for the supply of goods differs from the rate for the provision of services. In certain cases, exemptions apply in addition to special rates.
How can DCTL help you?
Indirect taxes are often quite complex given the amount of case law and continuously changing legislation. By asking our professionals for advice you are assured of receiving a careful and clear analysis of the issue in question and guidance on how to implement same. You are thus able to take advantage of the opportunities available, while not only avoiding risks and costs, but also delays to your business processes. We will of course aim to find the most workable and efficient solution for you.