In the Netherlands, foreign companies may appoint a tax representative for all their administrative processes with tax administrations. They can also benefit from the import VAT deferral mechanism known as the “Article 23 VAT deferment license”.
Depending on the foreign company’s operations in the Netherlands, it may appoint a general or limited tax representative.
Tax representation with general license
The tax representative with a general license can take in charge the VAT registration and reporting obligations of the foreign company for all its operations subject to Dutch VAT: imports, exports, introductions and dispatches in EU, local sales , distance sales, purchases and sales of services, etc.
Thanks to the general tax representation, the company can benefit from the deferral of import VAT. This arrangement allows the company not to pay VAT to the customs services, but to simply postpone the amount on a periodic declaration. Thus, the import operation is neutral for the cash of the company.
Tax representation with limited license
The tax representative with limited license may only be responsible for reporting obligations related to imports and subsequent deliveries. This type of representation is very widely used in the Netherlands, and although its application scope is limited, the resulting declarative obligations are also limited.
In fact, if the tax representative with a limited license declares periodically the operations carried out by the foreign company and using his own VAT number, the foreign company doesn’t need to register for VAT in the Netherlands. .
Like the general tax representation and despite an absence of VAT registration, the company can benefit from the deferral import VAT, thanks to the license of its tax representative.
Thus, the tax representative with limited-license allows foreign companies with subsequent imports or deliveries to the Netherlands, to avoid any VAT obligations.
For example, a French company that wishes to import products only to the Netherlands and sell them locally to companies established there, has a possibility to appoint a tax representative with limited license in order to benefit from the carry forward import VAT, but it does not need to register for VAT.
ASD Group is present in 25 countries around the world including the Netherlands. If you want to develop your business there, do not hesitate to contact us for your tax representation.