VAT in Brief – Imports Netherlands
By Toon Hasselman, LIMES International B.V.
When goods are imported into the Netherlands, VAT becomes due (21% or 6%). The following local B2B sale is subject to the reverse charge, and an intra-community sale or export is zero-rated.
Import VAT refund
Import VAT can be claimed back unless the business performs VAT-exempt activities: EU and non-EU businesses, either via the VAT portal or by VAT return, as applicable.
Dutch-based businesses and VAT PE’s can apply for an “art. 23 licence”. The import VAT due is then deferred to their VAT returns in which they can claim this VAT back, so no cash VAT needs to be paid. A Dutch business receiving consignment stock can use its own licence. Import VAT can be suspended when goods are brought in under qualifying bonded warehouse regimes.
A foreign business can register directly for VAT in the Netherlands. If a non-EU business makes so-called distance sales from the Netherlands, it must appoint a General Fiscal Representative (“GFR”).
A foreign business can appoint a Limited Fiscal Representative (“LFR”) or GFR. The LFR is only responsible for import VAT upon and the following supply of goods for which it is appointed (an LFR can represent many businesses using a special VAT number and usually has an art. 23 licence). A GFR is responsible for all VAT consequences of a business in the Netherlands. The business has its own VAT ID and can apply for an art. 23 licence. A GFR will usually ask for a guarantee between EUR 25,000 and EUR 2.5 million.
Toon HasselmanLIMES International B.V., Valkenburg ZH, The Netherlands
T: +31 88 089 90 00
LIMES International B.V. is an independent international tax consultancy firm specialising in cross-border issues. It focuses exclusively on companies and expats that cross borders, providing them with a broad range of integrated solutions in tax and expat, legal, payroll, immigration and relocation, pension and insurance, HR, and VAT and customs services.
Toon Hasselman is an experienced high quality VAT and Customs Specialist to both national and international companies. He provides simple and practical solutions, “outside-the-box” alternatives and promotes a no-nonsense approach with a conclusive solution at fair cost. Toon is also the Global Vice-Chairperson of the GGI Indirect Taxes Practice Group.
Published: Spring 2017 l Photo: Nataraj - Fotolia.com