Aruba: Government postpones the implementation of VAT system (BTW) until 2024
The Government of Aruba has postponed the implementation of VAT for another year, till 1 January 2024. In a press conference held by Prime Minister Evelyn Wever-Croes and Minister Ursell Arends the delay was made due to concerns about global inflation and the aftermath of Russia’s invasion of Ukraine.
The VAT system was originally set to begin on 1 January 2023. It would replace indirect taxes like:
- the 1.5% business turnover tax (“belasting over bedrijfsomzetten” or BBO),
- the 3% health tax (“bestemmingsheffing AZV” or BAZV), and
- the 1.5% additional funding tax for public-private partnership projects (“belasting additionele voorzieningen PPS-projecten” or BAVP).
Besides delaying the introduction of VAT, the government proposes to increase the BBO from 1% to 1.5% and is considering cutting business profit tax and wage tax for pensioners.
“We did our calculations of the inflation effect caused by the VAT and weighted in the effects of the ongoing war in Ukraine for Aruba and came to the conclusion that right now it is not prudent to introduce the VAT in January 2023,” the Prime Minister mentioned.
Aruba, Bonaire, and Curaçao are part of the dependent Caribbean islands of the Netherlands. It depends heavily on tourism. Formerly part of the Dutch dependency, it is now an autonomous nation within the Kingdom of the Netherlands.
Source: government.aw
