Additional requirements for import of goods for sales in connection with the exemption of turnover tax
On 2 April 2019 additional requirements to obtain an exemption of turnover tax (omzetbelasting) upon import of goods for sale were stipulated in a Ministerial Decree (P.B. 2019, nr. 12). The additional requirements are meant to increase taxpayers’ compliance and only make the exemption available to businesses that are up-to-date with their tax obligations. The additional conditions are the following:
• the taxpayer requesting the exemption must provide the Customs’ Authorities with a declaration from the Receiver stating that he has no past due recoverable tax or social premium debts;
• if the taxpayer does have past due tax or social premium debts and has entered into a payment plan with the Receiver, a declaration must be provided which shows that the taxpayer is in compliance with the payment plan;
• the taxpayer has abided by all formal and material Customs’ obligations during the past three years; and
• the Customs’ Inspector has not issued an additional assessment of duties and taxes upon import to the taxpayer.
In addition, the turnover tax exemption is valid for at most twelve months from the date of issuance thereof. Should a taxpayer no longer qualify for the exemption, same may be repealed with immediate effect. The Customs’ Inspector may then also refuse to issue a new exemption to the taxpayer.
Taxpayers who on 3 April 2019 were already in possession of a turnover tax exemption are required to provide the Customs’ Authorities with the following documents ultimately by 2 June 2019:
• a declaration from the Receiver stating that he has no past due recoverable tax or social premium debts; or
• a declaration stating that he has entered into a payment plan with the Receiver and that he is in compliance therewith.
In addition, the taxpayer must have abided by all formal and material Customs’ obligations during the past three years. The Customs’ Inspector may also not have issued an additional assessment of duties and taxes upon import to the taxpayer. If the taxpayer does not qualify for the exemption based on the additional requirements, his exemption of turnover tax on import of goods for sale will expire by operation of law at the latest on 2 June 2019. A new exemption will only be issued when all the conditions are met.
Given that an exemption can be repealed if a taxpayer no longer meets the conditions described above, we advise you to request a dispensation from the Tax Inspector regarding the deduction of turnover tax. Should your exemption be repealed, the dispensation would allow you to deduct the turnover tax paid upon import of goods for sale from the turnover tax due on sales in the relevant time-period.
Below you can find the links to the forms for application and additional information published by customs in Curacao.