VAT registration, representation and compliance
Trade and tax acts as fiscal or authorized representative (tax agent) for Dutch VAT purposes on behalf of foreign (non-Dutch) businesses (entrepreneurs).
Doing business within or via the Netherlands
Doing business within or via the Netherlands leads to several tax issues. Amongst others, VAT legislation has to be taken into account. You as a foreign (non-Dutch) entrepreneur may face an obligation to register your company for Dutch VAT purposes, including the obligation to charge and pay Dutch VAT, notwithstanding the administrative burden related thereto. However, there are certain facilities that can minimize the impact of common VAT rules.
Fiscal or authorized representation (tax agency) for Dutch VAT purposes is of importance for entrepreneurs that are not established in the Netherlands, but intend to conduct business within the Netherlands and the rest of the European Union. Foreign (non-Dutch) entrepreneurs can have the advantage of certain facilities provided that they appoint a so-called fiscal or authorized representative (tax agent) for Dutch VAT purposes.
Advantages of a fiscal or authorized representative (tax agent)
The fiscal or authorized representative (tax agent) files Dutch VAT returns, EC sales lists and cross-border trade statistics (Intrastat) on behalf of your company.
In order to trade excise duty goods in an excise duty warehouse or goods in a VAT/customs depot a fiscal representative is obliged. In other situations it can be very interesting to have a fiscal representative. If you as a foreign (non-Dutch) entrepreneur, for instance, import goods into the European Union via the Netherlands, you can obtain a special VAT deferral license if you appoint a fiscal representative for Dutch VAT purposes. With this license you do not have to pay VAT at importation. Instead, the fiscal representative reports the import VAT due in the Dutch VAT return (deferral facility). Since said import VAT, in principle, is deductable in the same VAT return, this license creates a cash flow advantage (‘no cash out’).
Furthermore, the fiscal or authorized representative (tax agent) takes care of your companies obligations for VAT and communications with the Dutch tax and customs administration.
The Netherlands: Your gateway to Europe
The Netherlands is famous for its expertise in international trade and excellence in transport and logistics. Whether it involves shipping tea and spices from Asia to Europe per wooden clipper, or the orchestration of just-in-time deliveries of microchips in a global network, throughout the centuries, the Dutch transport and logistics industry has proven its position as gateway to Europe. Many international companies use the Netherlands as location for their European supply chain operations; as point of entry into the European Union, for intercontinental freight by air and sea, or as location for central, bulk or regional distribution centers.
Our well trained professionals have a broad expertise in, and large knowledge of, amongst others, international trade and VAT. We provide fiscal and authorized representation (tax agency) services to a number of renowned clients located in the European Union, the United States of America and Asia Pacific. Both in our role as fiscal representative with a general license in the Netherlands (‘GFR’), as well as authorized representative (tax agent), we arrange all VAT matters which can occur for entrepreneurs doing business within or via the Netherlands.
Contact Trade and tax
Trade and tax is a multi-disciplinary tax services provider, ready to assist you with various tax related matters. Want to know more about us, or want to work with us? Visit our contact page.