Curaçao turnover tax (OB) on invoices

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

By Vokality · Rules checked · Updated

How does OB work on an invoice in Curaçao?

A business established in Curaçao and registered for OB charges 6% on the consulting, IT, marketing and electronic services it supplies to local clients. On a fee of XCG 1,000, the invoice adds XCG 60 OB, for a total of XCG 1,060. Invoices in Curaçao also need the details the local invoice rules ask for, such as your name and the date of the service. Invoices from Curaçao are titled “Invoice (factuur)”. Small-business relief up to XCG 30,000 a year is for sole proprietors with a written decision of the Inspector. It changes how OB is paid to the tax authority, not what an invoice charges. Zentract applies these rules to invoices and quotes: it works out the OB 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 Curaçao collects OB.

At a glance

Tax
Curaçao turnover tax (OB)
Rate on services
6%
Charged on
The net amount
Invoice prices
Exclude the tax; it's added and shown
Invoice title
Invoice (factuur)
Your registration number
CRIB number
Small-business relief
Relief from remitting OB up to XCG 30,000 turnover, for sole proprietors, by written decision of the Inspector, starting the next calendar year. OB is owed on turnover above the limit, and invoices still charge OB
Tax authority
Belastingdienst Curaçao

Which clients do you charge OB?

For a business in Curaçao that charges OB 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 CuraçaoOB 6%Your business is established in Curaçao and this is an ordinary service, so 6% OB applies.
Business in BonaireABB reverse-charged to the clientWhen the service is used outside Curaçao. Otherwise OB 6%. You confirm this on each invoice.
Business in ArubaNo OB — used outside CuraçaoWhen the service is used outside Curaçao. Otherwise OB 6%. You confirm this on each invoice.
Business abroadNo OB — used outside CuraçaoWhen the service is used outside Curaçao. Otherwise OB 6%. You confirm this on each invoice.
Private client abroadNo OB — used outside CuraçaoWhen the service is used outside Curaçao. Otherwise OB 6%. You confirm this on each invoice.

What must an invoice in Curaçao show?

Every Zentract invoice has a sequential number, an issue date, line items and totals. For a typical invoice to a business client in Curaçao, 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
  • Your CRIB number
  • Your Chamber of Commerce (KvK) number
  • Client name
  • Client address
  • Service date or period

Amounts and special cases

  • Invoices list prices excluding OB, then the 6% OB and the total. Proposals show prices including OB.
  • When you invoice in another currency, such as USD, the OB amount is also stated in XCG at the latest selling rate of the Central Bank of Curaçao and Sint Maarten (CBCS) when the OB becomes due: normally the invoice date, or the last day the invoice should have been issued if it's late. For the US dollar, the CBCS publishes two selling rates: one for transactions between residents and non-residents, and a lower one for transactions between residents only. The ordinance doesn't say which applies, so ask your accountant or the tax office if you're unsure, and keep to one approach. Zentract asks for the rate and invoices in your organization's currency.
  • No OB for a client abroad applies only to services designated in the OB regulation, such as advice, marketing and IT. The regulation doesn't name “electronic services” as such, and other services stay at 6%. Zentract treats consulting, IT and marketing as designated. For electronic services used abroad it asks you to choose a category or record your decision. It can't tell whether your work really falls under the service you chose, so check that yourself.
  • Invoice within fifteen days after the month of the service, and before each advance payment falls due. Zentract doesn't track this.
  • For ongoing work, the service period can replace a single service date, for up to a year.

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

When is no OB charged?

  • If your services are exempt, invoices show “OB · Exempt” where the tax amount would be.
  • When a business in Curaçao accounts for the OB itself (reverse charge), the invoices it receives show “OB · Reverse charge” instead of a tax amount.
  • When a service is outside OB, the invoice has no tax line and no note.

Which tax status fits your business?

I charge OB
6% OB is added to your invoices. Offers show prices including OB.
RKO relief from remitting OB
The Inspector approved relief from remitting OB. Your invoices still charge OB, and your annual return is still required.
My services are exempt
A statutory exemption covers your services. Invoices state the exemption instead of charging OB.

Questions

What is the OB rate for services in Curaçao?
6% OB on ordinary services such as consulting, IT, marketing and electronic services. Rates for specific sectors aren't covered by Zentract.
Do I charge OB to clients outside Curaçao?
Consulting, IT, marketing and similar designated services are outside OB when the client is established abroad and uses the service there. Zentract asks where the service is used on each invoice and keeps the answer with it. If the client uses the service in Curaçao, OB applies.
Can I invoice Curaçao clients in US dollars?
Yes. The OB amount must then also be stated in XCG, converted at the latest CBCS selling rate when the OB becomes due. In Zentract, USD must be your organization's currency: you can't choose a currency per invoice. The CBCS publishes two US dollar selling rates, and the ordinance doesn't say which applies, so check with your accountant or the tax office if you're unsure. Zentract asks for the rate and prints OB in XCG on the invoice.
I have RKO relief. Do my invoices still charge OB?
Yes. RKO relief changes how you remit OB, not what you charge. Invoices still show OB.
Why is a Curaçao invoice titled “Invoice (factuur)”?
Curaçao's invoice rules require the designation “factuur” on invoices. Zentract adds it to invoices from Curaçao businesses.
What must an invoice in Curaçao show?
Article 44 of the Algemene landsverordening Landsbelastingen asks for the word “factuur”, a sequential number, the issue date, your name, address, CRIB and KvK numbers, the client's name and address, a clear description, the scope of the service, the unit price before OB, the date or period of the service if it differs from the issue date, the OB rate, the consideration, the OB amount and the total. The copy you keep says “kopie factuur”. Zentract always asks for the service date or period, and doesn't make a separate copy.

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 Curaçao or a tax adviser.

Other tax jurisdictions

How Zentract handles tax