Dutch Caribbean dependency Kingdom imposed 4% turnover tax on foreign digital service providers 1 January 2023
Aruba became the 99th country to impose it’s turnover tax, Revenue Tax, on non-resident providers of digital services to its consumers from 1 January 2023. Aruba VAT implementation has been delayed until 2024.
The move shifted the place of taxation to Aruba for B2C and B2B transactions. However, for B2B electronic service imports, the local customer is responsible for the VAT reporting under the reverse charge.
The requirements extend to intermediary platforms for hotel and lodging digital platforms. But do not apply to platforms for digital services.
Central and South America VAT on digital services
|Comments (click for details)||Rate||Date||Threshold||Comments|
|Bahamas||10%||Jan 2015||BSD 100,000|
|Barbados||17.5%||Dec 2019||BBD 200,000|
|Costa Rica||13%||Oct 2020||Nil||Withholding VAT option|
|Dominican Republic||18%||2023||Nil||Currently withholding VAT|
|El Salvador||13%||2022||-||Replace Withholding VAT|
|Paraguay||10%||Jan-21||Nil||Withholding VAT; 4.5% DST|
|Puerto Rico||10.5%||Jan 2020||$100,000; or 200 transactions||Marketplaces|
|Suriname||10%||Jan 2023||SRD 500,000|
|Uruguay||22%||Jan 2018||Nil||VAT and Withholding Tax|