Tax in Zentract

The tax on a service invoice depends on where the business sending it is established. For ordinary services, a registered business charges the rate of its own country or island: Aruba 7% BBO/BAVP/BAZV, Curaçao 6% OB, Sint Maarten 5% BBO, Bonaire 6% ABB, Saba 4% ABB, Sint Eustatius 4% ABB and Suriname 10% BTW. In Aruba and Sint Maarten, Zentract includes the tax in the price; in Curaçao, Bonaire, Saba, Sint Eustatius and Suriname, it adds the tax to the net amount and shows it on its own line. When the client is abroad, the outcome depends on the jurisdiction, the kind of service and sometimes where the client uses it. On invoices and quotes, Zentract decides where the rules allow and asks where they depend on something only you know. Zentract covers consulting, IT, marketing and electronic services, not goods, and the tax rules are included in every plan, including Free.

1. 1.

   Set up tax once

   In Organization settings, under Invoice details, choose where your business is established and your tax status, and enter your registration numbers. Once you save, Zentract shows how typical clients will be taxed.
2. 2.

   Add each client's tax details

   Give each client a location, a country or an island, and say whether it's a business or an individual. That decides the treatment for cross-border work.
3. 3.

   Create invoices, quotes and proposals

   The tax shows as you edit. When the rules depend on something only you know, such as where the client uses the service or what kind of service it is, Zentract asks on invoices and quotes. Proposals have no tax questions: settle the treatment on the quote or invoice.
4. 4.

   Send

   Before you send an invoice, Zentract checks the details the jurisdiction requires, such as your CRIB or FIN number or the service period. When you send an invoice or quote, the tax and the details used are locked with it. When you share a proposal, a determined tax treatment is locked.

• The title the jurisdiction requires, such as “Invoice (factuur)” in Curaçao.
• Your registration numbers, such as FIN, CRIB and KvK, and the client's where they're required.
• Totals with the tax where the jurisdiction shows it, or a short statement where the tax amount would be when the law asks for one, such as “ABB verlegd · Reverse charge”. Aruba invoices show one total and don't mention the levies.
• In Curaçao, the Caribbean Netherlands and Suriname, the tax in the local currency when you invoice in another one, with the exchange rate. Zentract invoices in your organization's currency.

When no tax applies, for example for a client abroad, the invoice shows no tax. A zero-rated invoice is different: it shows the taxable amount and a 0% rate. Your reasoning stays in Zentract, not on the client's document.

Every rule in Zentract is dated and tied to its legal sources, which each guide lists, and Zentract rechecks them on a schedule. When a rate or rule changes, drafts follow the new rule for their date, and documents you've already sent keep the rule they were sent with.

Which tax jurisdictions does Zentract support?

Aruba, Curaçao, Sint Maarten, Bonaire, Saba, Sint Eustatius and Suriname. In Suriname that's BTW, a value added tax; in Aruba, Curaçao and Sint Maarten it's a turnover tax; in Bonaire, Saba and Sint Eustatius it's ABB, a general expenditure tax. Zentract covers ordinary services: consulting, IT, marketing and electronic services.

Do I need a paid plan for tax?

No. Tax works the same on every plan, including Free.

Does Zentract file my tax returns?

No. Zentract works out the tax on your invoices, quotes and proposals and keeps a record of how it was determined. Filing returns and paying the tax authority stay with you or your accountant.

What isn't covered?

Goods, lodging and tourism levies, rates for specific sectors, and tax returns. When the rules can't decide a case on an invoice or quote, Zentract asks you to set the treatment on the document instead of assuming no tax. Proposals have no tax questions. In Suriname, a proposal can only be shared when BTW is determined without further answers, so for a client abroad, send a quote instead.

My business is somewhere else. Can I use Zentract?

Yes. Choose “Tax jurisdiction not configured” in your tax settings. Your documents carry no tax, and nothing is blocked. That doesn't make your work tax-exempt, so check what you owe with your accountant.

What happens when a tax rate changes?

Zentract's tax rules are dated. Drafts follow the rules in force on their date (in Suriname, the date BTW becomes due), and documents you've already sent keep the rules they were sent with.