Published On: Mon, Dec 2nd, 2013

VBC: ‘New sales tax system leads to chaos’

WillemstadWILLEMSTAD - The Curaçao Business Association (VBC) says that they are worried about the new system of value added tax. The VBC says that the system used in recent years was relatively easy with one rate and a number of exemptions. For budgetary reasons there are now multiple rates, ‘retaining accumulation’ and making new demands on the receipts. A mandatory cashiers’ registration system will become operative on January 1 of next year.

According to the VBC the change in the sales tax system is leading the way into confusion, a burden, a hard to implement performance and increased vulnerability to fraud. In summary: chaos, according to the VBC. The association says that the government officials have not learned from the problems that the new basic insurance have caused. There are proposals on the table for as many as 31 kinds of premium rates. In the sales tax law it’s about four tariffs and more than twelve rates for import.

The entire spectrum of differentiation leads to administrative burden, not only for employers, but also for the monitoring entities, the tax authorities and the Social Insurance Bank (SVB), the VBC indicated.

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