Beruflich Dokumente
Kultur Dokumente
Aruba
Health tax
Introduction
As of 1 December 2014 the health tax (in Dutch: bestemmingsheffing AZV) entered into force. All
income received with regard to the health tax (hereinafter: BAZV) will go to the Aruba General Health
Insurance Fund (AZV) to strengthen its funding. Hence the name health tax.
Subject to the BAZV are entrepreneurs whom in the course of their business supply goods or render
services in Aruba who are currently subject to the Aruba turnover tax (hereinafter: BBO). Every
entrepreneur that delivers goods and/or renders services in Aruba as of 1 December 2014 has to pay
BAZV to the Aruba Tax Authorities on the compensation received for the goods delivered and the
services rendered.
The entrepreneur has to pay BAZV on the total compensation received with regard to the delivery of
goods and/or the rendering of services. If the received compensation is less than the fair market value
of the delivery or service, the compensation will be corrected to the fair market value.
The BAZV rate is 1%. As mentioned, this percentage will be levied on the received compensation. On
this compensation the entrepreneur also has to pay 1.5% BBO to the Aruba Tax Authorities. As a
result, the entrepreneur has to pay a total of 2.5% of BAZV and BBO on the received compensation.
Compensation
Example 1
BBO and BAZV are charged to the client
Compensation
(excluding taxes)
Exemptions
Deliveries and services that are exempt for BBO purposes are
also exempted for the BAZV. For example, a medical doctor
renders exempt services for both the BBO and the BAZV.
Afl. 1,000.00
Fiscal Unity
BBO (1.5%)
Afl. 15.00
BAZV (1%)
Afl. 10.00
Total compensation
BAZV on invoice
Afl. 1,025.00
Afl 15.37
Afl 10.25
Afl 25.62
The BAZV is due upon receipt, the so-called cash basis. Upon a
written request of the entrepreneur the Tax Inspector can
approve that the accrual system is used. In that case the BAZV
becomes due when the invoice for the delivery or service is
issued. In case the entrepreneur already has an approval from
the Tax Inspector to use the accrual system for BBO purposes,
no separate request is required for BAZV purposes.
Example 2
BBO and BAZV are absorbed
Compensation
(including taxes)
Total compensation
Afl. 1,000.00
Afl 1,000.00
Afl 15.00
Afl 10.00
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Transitional provisions
Concluding
Health tax | 3