Tax-Free Jewelry in Aruba: The Real Answer for Tourists

Tax-free jewelry in Aruba is a phrase you will see on a hundred shop windows, and it is only half true. Aruba is duty-free, not tax-free. You will not pay VAT or a US-style sales tax at the register. However, every price on the island already includes a 7% turnover tax, and your own customs rules apply when you fly home. Once you know this, the “70% off duty-free” signs become what they are: marketing. Then you can compare prices honestly.

What “duty-free” means in Aruba

Aruba’s import duties on jewelry and watches are low, and retailers absorb them into pricing rather than adding them at the till. For that reason, the Aruba Tourism Authority describes the island’s shops as duty-free. It does not mean the goods are untaxed.

The tax inside every price: BBO, BAVP and BAZV

Aruba does not have VAT. Instead, it levies turnover taxes on business revenue: the BBO (turnover tax), the BAVP (a destination levy) and the BAZV (a health levy). Together they total 7%, after the BBO rose by one point in January 2023. Stores either show prices with the 7% included or add it on the invoice. Either way, you are paying it. A 12.5% VAT has been discussed for years and shelved. At the time of writing, the turnover-tax system remains in force, and we update this page when that changes.

Tax-free jewelry in Aruba versus buying at home: what you actually save

• US buyers: your state and local sales tax, typically 6 to 10%. On a $5,000 ring, that is $300 to $500.
• Canadian and European buyers: HST or VAT of 13 to 25%, minus whatever your customs charges when you return.
• On branded watches and designer jewelry, the base price is the brand’s list price. Therefore, the tax difference is the whole saving.
• On loose diamonds and house-brand gold, Aruba’s downtown stores also compete on price. As a result, the saving can be larger, but only if you compare the certificate rather than the discount tag.

US customs when you get home

• Returning US residents have an $800 duty-free personal exemption if they were abroad at least 48 hours and have not used it in the previous 30 days. Family members travelling together can pool exemptions.
• The next $1,000 above the exemption is charged at a flat 3%.
• Above that, normal duty rates for the item apply. Jewelry rates are generally in the low single digits.
• Everything must be declared. Keep the invoice and certificate together. If you travel with valuable jewelry you already own, register it on CBP Form 4457 before leaving. Otherwise, it can be mistaken for a new purchase. Full rules are on the CBP website.

How to read a “tax-free jewelry in Aruba” price tag

1. Ignore the crossed-out “list price”, because it is often invented.
2. Ask whether the price shown includes the 7% turnover tax.
3. For diamonds, compare the certificate grade against a reference price you looked up before your trip.
4. For watches, compare against the brand’s official US price.
5. Finally, add your home customs on the way back if the purchase is over $800.

Would you like us to sanity-check a quote? Send it to us on WhatsApp. It is free, and we tell you plainly whether it is fair. Our diamonds page covers certificates in more depth.

Frequently asked questions

Is there sales tax on jewelry in Aruba?

No sales tax is added at the register in most stores, and there is no VAT. However, a 7% turnover tax (BBO/BAVP/BAZV) is built into prices.

Do I have to declare jewelry bought in Aruba?

Yes. US residents declare everything. They get an $800 exemption, a flat 3% on the next $1,000, and normal rates above that.

Can I claim any tax back when leaving Aruba?

No. Aruba has no tourist VAT-refund scheme, because it has no VAT.

Sources: Aruba Tourism Authority (duty-free shopping); Aruba Fiscal Plan 2023 summaries by EY, Sovos and HBN Law (BBO increase to 7%); U.S. Customs and Border Protection, 19 CFR Part 148 (personal exemption). We are not tax advisors, so confirm your own situation with your customs authority.