Benefits of the Dutch VAT regime

When importing and selling goods into the European Union, both import duties and VAT (Value Added Tax) will generally be due by the seller. Foreign companies that route their European imports and sales through the Netherlands not only benefit from efficient logistical hubs such as the port of Rotterdam and Schiphol airport near Amsterdam, but also from Dutch VAT laws.

While the fundamentals of VAT legislation are the same throughout Europe, there are nevertheless significant differences in implementation from one EU member state to the next. In most EU member states, import duties and VAT are due immediately upon importing goods into the EU. When those goods are subsequently sold to customers in other EU member states, VAT paid at import can be reclaimed, but the process is lengthy, raising the need for additional working capital.

The Netherlands on the other hand offers international trading companies an interesting VAT deferral regime that offers significant cash flow advantages. Payment of VAT due on imported goods may be postponed and settled at the moment of selling those goods.

Fiscal representative

Both Dutch and foreign companies can benefit from the VAT deferral regime, however companies that are not established in the Netherlands need to appoint a fiscal representative. A fiscal representative takes care of tax filings on behalf of the foreign company and ensures compliance with VAT laws.

ABLD assists foreign companies in the process of obtaining a Dutch VAT-number, as fiscal representative and in dealings with the Dutch tax authorities. We provide advice on how to comply with invoice requirements and maintain an adequate administration for tax purposes.