ATIA president Hendrick Heriques called a press conference as a trade union. According to Mr. Herriques, trade unions have already voiced their thoughts on BBO at the border, however, there are various developments taking place and what parliamentarians have voiced their reaction to this.
According to Mr. Hendrick Heriques the BBO law at the border is not a new law, it is known that in 2020 this law was introduced but due to COVID was stopped. What is very interesting is that we are receiving a lot of information from parliamentarians that the law is good ect ect, but the reality is that the law is not clear and the law is in Raad van Advies at the moment and it has yet to reach parliament.
ATIA for its part requested a meeting with the parliament, but also in the past the minister concerned told ATIA that there will be a meeting with the government and they will find a draft of the law that ATIA has not yet received.
ATIA is concerned that there is a law that must come into force on the first day of June which is 17 days before the law should come into force, a law that will affect Aruba fully. ATIA president Hendrick Heriques believes it is very important to bring some of the BBO law points to the border. The term that affects and determines how this law is enforced is the term commercial property.
The term handels goederen saw its changes in 2020 and 2023, but it could also be understood that the term has returned to what it was. What is a trade? According to ATIA president Hendrick Heriques handelsgoed is the product that people import and sell. As ATIA understands, the desire was to expand this law. A product brought to Aruba is verwerk and bewerk, so you can work on the product and then sell it.
The importance of this is the same as the VAT when you import a product and resell it you get a credit, but now with the BBO at the border it handles a pre-payment of the BBO that a company has to pay, then it gets a credit and pays the balance when they sell the product.
According to ATIA President Hendrick Heriques this is the importance of the trade goods. If the company does not get a credit for the product it imported and has to pay 7% of the BBO at the border it has to understand that 7% is an increase in the cost of the product because the price of the product at the time of resale will be higher considering that it did not get the credit.
According to ATIA president Hendrick Heriques, the media may have noticed that there is a rumor that everyone gets credit, but as traded goods are interpreted by experts to be members of ATIA it should be clear that the traded goods are very specific now and it is not clear what everyone gets in the trade goods. This is one of the important points for merchants to know what products are in the market so that they know whether the products will be imported or not.
A term that should be simple, to say that everything that is imported gets a credit restricts trade goods. For example, when imported meat is cut into pieces, if the meat has to be cut to make a new product, it cannot be left alone, this includes a piece for chicken. If you look at this, you can imagine how much administrative work this entails to see where yes and where no, according to ATIA President Hendrick Heriques, these are the kind of questions that have a yes and a no time. An explanation for this is important because it will affect prices.
These are points that trade unions want more clarity on and hope that the tax department and the minister concerned will come forward to bring more clarity.
1 comment
[…] Source link […]