Following the VAT Directive, when the company, subject to the VAT is not established in the member state where VAT is supposed to be paid, Member States could grant their permission to appoint a tax representative as a taxable person.
While many States, including the Netherlands, have decided to exploit this possibility, the arrangements regarding the appointment of the tax representative and its role vary a lot from one Member State to another.
THE ROLE OF THE TAX REPRESENTATIVE IN THE NETHERLANDS
The tax representative, appointed by a company which is not established in the Netherlands, has a representing mission for it before the Dutch tax authorities. He is in charge to file the VAT declarations on behalf of the company and make a payment once it’s due.
However, companies that appointed a tax representative remain accountable before the Dutch tax authorities.
TAX REPRESENTATION WITH A GENERAL OR LIMITED LICENSE
The tax representative with general license is responsible for the duties, incumbent on companies that are not established in the Netherlands for all their operations for which they are liable for Dutch VAT, or are subject to reporting obligations in the Netherlands.
On the contrary, the tax representative with a limited license cannot assume the obligations incumbent on companies not established in the Netherlands for their import operations followed by intra-Community deliveries (BtoB).
TWO CASES OF COMPULSORY APPOINTMENT OF A TAX REPRESENTATIVE
The appointment of a tax representative is mandatory for companies established outside the EU that effect e-commerce (BtoC) in the Netherlands.
In addition, the appointment of a tax representative is mandatory in order to benefit from the system of VAT deferral due to importation on VAT declarations called « License Article 23 ». This mode allows companies not to pay VAT beforehand due to the import of goods on the territory of the Netherlands, which constitues an interesting cash flow gain.
The experts of ASD Group, present in the Netherlands, offer you a tax representation adapted to the transactions realized by your company. Contact us for more information.