The 2012 worldwide VAT, GST and sales tax guide

148 C URAÇAO
Rates
Standard 6%
Other
Special rate for insurance
through brokers
TOT number format 1XX.XXX.XXX (9 digits)
TOT return periods Monthly (quarterly or annually
on request)
Thresholds
None
Recovery of TOT by
nonestablished businesses No
B. Scope of the tax
TOT applies to the following transactions:
• The delivery of goods or services by a taxable entrepreneur as
part of its business in Curaçao
• The import of goods into Curaçao
C. Who is liable
In principle, a taxable entrepreneur is a business entity or individual
who delivers goods or performs services (tax activities) in
Curaçao. This includes a representative that supplies services on
behalf of a nonresident business. Effective from 1 January 2012,
the definition of an entrepreneur is broadened to include an
entity or individual who manages an asset to obtain revenue from
the asset on a permanent basis. For example, any form of leasing
real estate located in Curaçao is subject to TOT, unless an exemption
applies. TOT is not due for certain services provided by an
entrepreneur established in Curaçao to a nonresident person or
business if these services are not enjoyed in Curaçao.
Before the amendments of TOT (that is, before 1 January 2012),
for services provided in Curaçao by “nonestablished businesses,”
a reverse-charge mechanism applied and the business receiving
the service was liable for TOT if the services were actually performed
in Curaçao. However, effective from 1 January 2012, for
TOT purposes, the place of services provided by “nonestablished
businesses” is no longer the place where the services are actually
performed, but the place where the services are enjoyed. The
businesses enjoying the services in Curaçao provided by “nonestablished
businesses” are liable for TOT. For these services, the
businesses for which the services are performed must report and
pay TOT.
In general, a taxable entrepreneur that begins taxable activities
must notify the tax authorities of its liability to register.
Special rules apply to “nonestablished businesses,” small enterprises,
cultural organizations, gambling companies, E-zone companies,
offshore companies and offshore banks and entities that
have a foreign-exchange license.
Nonestablished businesses. A “nonestablished business” is a
business that does not have a fixed establishment in Curaçao. A
nonestablished business may become liable for TOT and accordingly
subject to registration if a permanent establishment is
deemed to exist in Curaçao. The TOT law does not provide a
definition of a permanent establishment.