Aruba Court Confirms Reliance on Ministerial Guidance for BBO/BAZV Deduction Claims
Introduction
A recent judgment by the Court of First Instance of Aruba provides important guidance on the application of the BBO at the Border regime and the principle of legitimate expectation. The decision may be particularly relevant for businesses in the hospitality and food & beverage sectors that imported goods during the initial implementation of the regime.
Overview
In a significant decision for Aruba's hospitality and food & beverage sectors, the Court of First Instance of Aruba ruled that a taxpayer was entitled to rely on statements made by the Minister of Finance during the introduction of the "BBO at the Border" regime. As a result, the Court annulled BBO/BAVP and BAZV assessments that had been imposed for August 2023 with respect to the deduction of BBO at import.
The judgment reinforces the importance of the legitimate expectation principle and may be relevant for businesses that imported food and beverage products during the initial implementation period of the border-tax regime.
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