VAT Agents

The Netherlands is known as ‘the gateway to Europe.’ Many foreign trading companies use the Netherlands as EU distribution hub. Goods are imported into the Netherlands from outside the EU, from other EU member states, or acquired in the Netherlands itself. These goods are then usually stored in a Dutch 3PL distribution warehouse to be shipped across Europe after each order. The Netherlands can also just be used as point of entry int the EU, to be onward shipped into Europe after customs clearance in the Netherlands.

or if the foreign company wants to make use of the following facilities:

• Article 23 VAT Import VAT Deferment License. (enables to import VAT free)
• VAT Warehouse License (appointed goods can be sold against 0% VAT within the warehouse)

Feel free to reach out to us for further information on Fiscal Representation via [email protected] or call us on +31 64 3210 794 (NL time zone)

When goods are imported from outside the EU into the Netherlands, in principle both import duties and import VAT must be paid to customs upon import. The import duties are not recoverable (but once paid the goods are in free circulation in the European single market). The import VAT can be reclaimed through quarterly VAT returns.

With an import VAT deferment license (article 23 license), no VAT will be levied upon import, but shall be reported in the periodic VAT returns instead. Because the import VAT due can be reclaimed in the same VAT return, no cash will leave your pocket and thus generates a cash flow advantage. It also prevents you from paying advanced payment fees to your forwarding company, since they do not have to prepay the import VAT to customs. Non-Dutch companies must be fiscal represented in order to obtain and use the article 23 license.

Feel free to contact us for more information on Import VAT Deferment or request an Article 23 import VAT Deferment License today via [email protected] or call us on +31 64 3210 794 (NL time zone)

When registered for VAT in the Netherlands, one has the obligation to submit periodic VAT returns. The standard VAT return filing frequency in the Netherlands is quarterly. You can however request the tax authorities to change the filing frequency to monthly, for example in case of high VAT refunds. You can also be put to monthly filings by the tax authorities if you frequently pay your VAT debts late.

Dutch VAT returns are to be completed with the Tax Authorities within 2 months after the end of the relevant period.

Having White Silo take care of your Dutch VAT returns means ensuring 100% VAT compliance for your company, while you can focus on your core business. Our consultants will let you know when each return is due and, based on the data provided check if VAT is applied correctly on all transactions.

Feel free to contact us for more information on Dutch VAT returns via [email protected] or call us on +31 64 3210 794 (NL time zone)

OSS: for shipments from the Netherlands to EU private individuals (distance sales)

Sales made by foreign (e-commerce) companies to EU private individuals, shipped from a warehouse in the Netherlands are taxable in the EU member state of destination. This means that on each order VAT at the rate of the ‘ship to’ country should be charged. The local VAT collected can then be paid to the local tax authorities through a local VAT registration.

However, instead of having to VAT register in each and every European country of destination, companies can opt to register for the so called One Stop Shop (OSS) scheme. When registered for OSS in the Netherlands companies can accumulate all local VAT due in one quarterly OSS return, and pay the total amount to the Dutch Tax Authorities. The Dutch tax authorities will then distribute the local VAT they received to the local Tax Authorities.

IOSS: For low value shipments from outside the EU directly to EU private individuals

Sales made by foreign (e-commerce) companies to EU private individuals, shipped directly from a non-EU country to consumers within the EU, are taxable in the EU member state of destination. This means that on each order VAT at the rate of the ‘ship to’ country should be charged. The local VAT collected can then be paid to the local tax authorities through a local VAT registration. The import VAT paid to the customs authorities of each EU member state of import can be reclaimed in the same local periodic VAT returns.

Non-EU companies that ship directly from a non-EU country to EU consumers should therefore register for VAT in each member state of destination. Alternatively companies can choose to sell on a non-DDP basis, meaning that the consumers will receive an invoice from the postal company before delivery containing import VAT and duties. This shall however happen at the expense of consumer experience.

For orders however valued less than EUR 150, companies can opt to use the Import One Stop Shop (IOSS) scheme. Under the IOSS scheme no import VAT shall be levied in the member state of destination and the local VAT charged at output can be paid through the Dutch Tax authorities through a single monthly consolidated IOSS return. The Dutch tax authorities will then distribute the local VAT received to the local Tax Authorities.

The IOSS scheme can be applied if:

• The goods are shipped from a non-EU country;
• The goods are shipped directly to a private individual in an EU member state;
• The shipments valued EUR 150 (ex VAT and shipping costs) or less;
• The seller is registered for IOSS and the goods are sold under their IOSS number

Under the IOSS scheme low value goods can be sold and shipped directly from outside the EU to EU consumers, without triggering local VAT obligations.

White Silo is a licensed IOSS intermediary registered with the tax authorities.

Sales of goods that are shipped from the Netherlands to a business in another EU member state (intra-community supplies), need to be reported not only in the quarterly Dutch VAT returns, but also in a separate EC Sales Listing. Not only sales, but also the intra-community shipment of own goods from the Netherlands to other EU member States is treated as an intra-community supply. In EC Listings both the values of the intra-community sales as well as the EU VAT number of the recipient are reported. EC Sales Listings must be submitted in the same frequency as your VAT returns. However, from the moment the value of intra-community supplies of goods exceed EUR 50.000 in a quarter, the EC Sales must be submitted on a monthly basis.

In order to collect statistics on the intra-community trade of goods, EU Member States oblige companies who exceed certain thresholds concerning the traffic of goods between member states (intra-community acquisitions, intra-community sales and movement of own goods) to submit monthly Intrastat declarations. The declaration threshold in the Netherlands for trade with EU Member States is € 800,000 per year for intra-community arrivals (goods shipped from other EU Member States to the Netherlands) and € 1,000,000 for dispatches (goods shipped from the Netherlands to other EU Member States).

The following information must be reported:

• Country of consignment/destination;
• VAT number of recipient;
• Country of origin;
• Nature of the transaction;
• Mode of transport ;
• The 8-digit commodity code;
• Volume of the goods (supplementary unit or weight);
• Value of the goods.

Companies not complying with their Dutch Intrastat obligations will be subject to sanctions.

Companies established outside the EU that encounter VAT in the Netherlands (such as VAT on tickets for events, on accommodation or on transport) but are not able to reclaim this VAT through Dutch VAT returns (e.g. because there are no activities in the Netherlands that enable the company to register for VAT in the Netherlands), are nevertheless entitled to reclaim that VAT.