Bonaire general expenditure tax (ABB) on invoices

General expenditure tax (ABB) on Bonaire is a 6% tax on the net amount of ordinary services, such as consulting, IT, marketing and electronic services, supplied by businesses established in Bonaire. Invoices add the ABB to the net amount and show it on its own line, followed by the total.

By Vokality · Rules checked · Updated

How does ABB work on an invoice in Bonaire?

A business established in Bonaire and registered for ABB charges 6% on the consulting, IT, marketing and electronic services it supplies to local clients. On a fee of USD 1,000, the invoice adds USD 60 ABB, for a total of USD 1,060. Invoices in Bonaire also need the details the local invoice rules ask for, such as your name and the date of the service. A sole trader or partnership of natural persons with turnover up to USD 32,000 a year can apply for small-business relief and, once approved, charges no ABB. Zentract applies these rules to invoices and quotes: it works out the ABB for each client from where the client is, whether the client is a business and, where it matters, the kind of service, checks the required details before the invoice is sent, and keeps the rules it used with the invoice. The Belastingdienst Caribisch Nederland collects ABB.

At a glance

Tax
Bonaire general expenditure tax (ABB)
Rate on services
6%
Charged on
The net amount
Invoice prices
Exclude the tax; it's added and shown
Invoice title
Invoice
Your registration number
CRIB number
Small-business relief
No ABB charged up to USD 32,000 turnover
Tax authority
Belastingdienst Caribisch Nederland

Which clients do you charge ABB?

For a business in Bonaire that charges ABB on consulting work, Zentract applies these treatments. Set each client's location and whether it's a business, and invoices, quotes and proposals start from it.

Tax treatment by client
ClientOn the invoice
Business in BonaireABB 6%Your business is established on Bonaire, so 6% ABB applies.
Business in SabaABB 6%Services between BES islands are taxed on the supplier's island, so Bonaire ABB applies.
Business in CuraçaoOB reverse-charged to the clientThe client is a business established outside the Caribbean Netherlands, so the service is supplied where the client is established.
Business abroadNo ABB — client outside the Caribbean NetherlandsThe client is a business established outside the Caribbean Netherlands, so the service is supplied where the client is established.
Private client abroadNo ABB — client outside the Caribbean NetherlandsWhen the service is used outside the Caribbean Netherlands. Otherwise ABB 6%. You confirm this on each invoice.

What must an invoice in Bonaire show?

Every Zentract invoice has a sequential number, an issue date, line items and totals. For a typical invoice to a business client in Bonaire, Zentract also asks for the details below. The questions further down say what the law requires and where Zentract asks for more.

  • Your legal or trade name
  • Your business address
  • Service date or period
  • Client name
  • Client address
  • Client CRIB number

Amounts and special cases

  • Invoices add 6% ABB to the net amount and show the ABB. Offers must show prices including ABB (article 6.24 of the Belastingwet BES), so proposals do.
  • The Belastingdienst Caribisch Nederland asks you to issue invoices within 15 days after the month of the service, and to invoice each advance or part payment. Zentract doesn't track this.
  • Your CRIB number may be left off when the amount charged is below USD 5,000. Zentract applies this on USD invoices.
  • Services below USD 200 may use a simplified invoice, counting related part invoices together. Zentract asks for that combined total, and applies this on USD invoices.
  • The client's address and CRIB number are required when the client is a business in the Caribbean Netherlands.
  • A service for a private client abroad that's used on another island of the Caribbean Netherlands can be taxed there. The law doesn't say outright which rate or liable party applies, so Zentract asks you to record your decision.
  • When you invoice in a currency other than USD, ABB is worked out at the last quoted selling rate when the tax becomes due. Zentract asks for that rate and also shows the ABB in USD. Zentract invoices in your organization's currency.

Zentract checks these details before you send and keeps the ones used with the invoice.

When is no ABB charged?

  • If your services are exempt, invoices show no ABB; no statement is needed.
  • When a business in Bonaire accounts for the ABB itself (reverse charge), the invoices it receives show “ABB verlegd · Reverse charge” instead of a tax amount.
  • When a service is outside ABB or small-business relief applies, the invoice has no tax line and no note.

Which tax status fits your business?

I charge ABB
6% ABB is added to your invoices. Offers show prices including ABB.
Small-entrepreneur relief (KOR)
The Belastingdienst approved KOR relief. No ABB is charged on your invoices.
My services are exempt
A statutory exemption covers your services. Invoices don't show ABB.

Questions

What is the ABB rate for services on Bonaire?
6% ABB on services supplied from Bonaire. Invoices add it to the net amount and show it; proposals show prices including ABB. Goods, insurance and some sectors have other rates, which Zentract doesn't cover.
Do I charge ABB to clients outside the Caribbean Netherlands?
Generally not, for consulting, IT and marketing services to a business whose relevant establishment is outside Bonaire, Saba and Sint Eustatius: the service is taxed there, and tax may be due in that country. Services tied to property, transport or events in the Caribbean Netherlands follow other rules. For private clients abroad, electronic services are outside ABB, and for advice, data processing and marketing it depends on where the client uses the service. Website and software work delivered online with little human involvement can count as an electronic service, so check with the Belastingdienst Caribisch Nederland. Other services to private clients stay taxed where you're established. Zentract asks on the invoice about IT, advice and marketing for private clients abroad, offering “outside Bonaire” or “in Bonaire”. If the service is used on another island of the Caribbean Netherlands, ABB can still be due, so check before you issue.
Do I charge ABB to a client on another island of the Caribbean Netherlands?
Yes, if you charge ABB. A service from Bonaire to a client on another island of the Caribbean Netherlands carries Bonaire's 6% ABB.
What does “ABB verlegd” on an invoice mean?
The client accounts for the ABB instead of the supplier (reverse charge). A supplier established outside the Caribbean Netherlands, for example in Curaçao, that invoices a business on Bonaire adds no ABB and marks the invoice “ABB verlegd”. A supplier on another island of the Caribbean Netherlands charges its own island's ABB instead. The client reports and pays the ABB on its own return.
Is there a small-business exemption (KOR)?
Yes, for sole traders and partnerships of natural persons established in the Caribbean Netherlands. A bv, nv, foundation or association generally can't use it unless at least 90% of its activities are social or cultural. You apply in writing, and it applies once the Belastingdienst Caribisch Nederland approves it. All your businesses count together towards the USD 32,000 limit, excluding ABB. If turnover goes above that, relief lapses and ABB becomes due on all of that year's supplies, payable on the first return of the next year, so contact the Belastingdienst Caribisch Nederland. You still keep records, report your turnover within 15 days after year end, and pay any ABB reverse-charged to you.
What must an invoice in Bonaire show?
Besides a sequential number, the issue date, the amounts and the ABB: a description of the nature and quantity of the service, your legal or trade name and business address, your CRIB number when the amount charged is USD 5,000 or more, and the service date or period. For a business client: its name, address and CRIB number.

Sources

Zentract applies these rules to ordinary services: consulting, IT, marketing and electronic services. Zentract helps you get invoices right but isn't tax advice. Check your situation with the Belastingdienst Caribisch Nederland or a tax adviser.

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