If you are an entrepreneur who is not based in the Netherlands (non-resident entrepreneur) and who supplies goods or services in the Netherlands, you will have to pay Dutch turnover tax in respect of these goods or services. Alternatively, you do not supply goods or services in the Netherlands but incur costs on which turnover tax was charged. In that case, you can reclaim this turnover tax.

What is a permanent establishment?

A permanent establishment is an industrial or commercial establishment located in the Netherlands that is equipped with sufficient manpower and other resources to operate as an independent business. The establishment is used for supplying goods and/or services to third parties. Examples of permanent establishments are:

• a shop or another fixed retail outlet;
• a workshop or a production plant with an adjoining office

A store, a warehouse or an office that is used only for certain ancillary or secondary activities (such as performing research, advertising or distributing information) is not regarded as constituting a permanent establishment. A rented holiday home is not considered to be a permanent establishment either.

Supplying services in the Netherlands

The term ‘services’ refers to all activities, other than the supply of goods, that are carried out on a commercial basis in return for remuneration. The following are examples of services:

• passenger and freight transport;
• musical and theatrical performances;
• the granting of licensing rights;
• the activities performed by management consultants, lawyers and accountants;
• activities relating to movable or immovable property.

Whether you owe VAT when rendering these services depends on whether the service is rendered in the Netherlands. If it is, you will – in principle – have to pay Dutch VAT. However, if the VAT owed is levied from the buyer of the service, you will not owe any VAT.

Therefore, you will only owe VAT if the service is rendered in the Netherlands and if the VAT owed is not levied from the buyer of the service.

Service is rendered in the Netherlands

Services are liable for Dutch VAT only if they are performed in the Netherlands. There are special rules for deciding where a service is performed (known as the ‘point of supply’), and the same rules apply in all EU Member States. The basic rule is that services are provided at the place where the supplier is either resident or established. The following services, amongst others, are excepted from this rule:

• Services relating to immovable property are considered to be rendered at the place where the property is located.
• Services in the field of culture, art, sports, science, education, entertainment or similar areas are considered to be rendered at the place where the activities are actually performed.
• Consultancy services, advertising and employment services are considered to be rendered at the place where the customer is established, assuming that the latter is an entrepreneur.
• Intra-Community freight transport is considered to take place at the point where the journey commences. If the customer has a VAT identification number issued by a Member State other than the Netherlands, the point of supply is considered to be in the other Member State.
• The repair and processing of movable property is – as a rule – considered to take place at the point where the relevant activities are actually performed.
• The repair and processing of movable property for a customer who has been assigned a VAT identification number in a Member State other than that in which the activities are actually performed. is considered to take place in the Member State which assigned the VAT identification number to the customer. This is subject to the condition that, following the repair or processing, the goods are dispatched or transported outside the Member State where the services were rendered.

The VAT owed is levied from the buyer of the service

If you perform services in the Netherlands as a non-resident entrepreneur, you do not normally have to deal with VAT, because the levy of VAT is often transferred to the buyer of the service. This means that it is the buyer of the service rather than you, the provider of the service, who has to pay VAT. In the following situations, the buyer of the service owes the VAT:

• the buyer of the service is an entrepreneur who is based in the Netherlands or has a permanent establishment in the Netherlands; or
• the buyer of the service is a corporate body based in the Netherlands.

Please note:

If the VAT charge is transferred to your customer, you are not allowed to include any VAT in your invoice.

If you are a non-resident entrepreneur supplying services in the Netherlands, and you need to pay VAT yourself (for example, because your customer is a private individual), you should register with the Dutch Tax and Customs Administration. You should file a return in the Netherlands.

Example 1

A firm of painters established in Belgium carries out painting work in a house in the Netherlands that belongs to a private individual. The painters are considered to render their services in the Netherlands. Because the customer is a private individual, VAT is not transferred to the customer. The Belgian firm of painters is liable for Dutch VAT: they must register with the Dutch tax authorities and file a VAT return in the Netherlands.

Example 2

A British pop group performs at a concert held in the Netherlands and organised by a Dutch entrepreneur. The service is considered to have been performed in the Netherlands. Because the buyer of the service (the organiser of the concert) is an entrepreneur, the VAT is levied from the buyer.

VAT and goods transactions

Various situations may arise with regard to the sale and purchase of goods, each of which has its own specific VAT implications. There are various ways in which you can buy and sell goods. The distance sales regulation may apply to supplies of goods to – inter alia – private customers.

You are buying goods from a supplier in the Netherlands

If you buy goods in the Netherlands and they remain in the Netherlands after purchase, the supplier will charge you VAT. You may deduct this VAT charge as input tax, unless you are intending to use the goods for a purpose that does not entitle you to deduct VAT, for example:

• exempt activities;
• private use.

0% rate

If you arrange for the entrepreneur from whom you buy the goods to export the goods immediately to a non-EU country, the supply is zero-rated.

Example

You buy sheet steel in the Netherlands, which you then immediately sell on to a Dutch entrepreneur. Because the steel remains in the Netherlands, your supplier charges you VAT. You do not charge your Dutch customer any VAT; the VAT is transferred to the customer.

If you buy goods with the intention of subsequently transporting them to another EU Member State, e.g. to a company of your own located in an EU Member State, the supplier is considered to perform an intra-Community supply. He does not charge you any VAT as the supply is zero-rated.

Please note:

If you pay for the goods in cash and take them with you straightaway, the supplier may find it difficult to prove that he has made an intra-Community supply. If he then decides to charge you VAT, you are entitled to deduct this charge as input tax. You yourself are considered to perform an intra-Community supply when you supply the goods to the company you own in another EU Member State.

You are performing an intra-Community acquisition in the

Netherlands

If you buy goods from an entrepreneur in an EU country other than the Netherlands, and transfer these goods to the Netherlands, your liability for VAT in the Netherlands will depend on whether the buyer of the goods is already known.

Buyer of goods is not known

If you transfer goods to the Netherlands before you have found a buyer for the goods, you will owe VAT. You will perform an intra-Community acquisition in the Netherlands. You will have to register with the Dutch Tax and Customs Administration. You will then be assigned a Dutch VAT identification number, which you should pass on to your supplier. In that case, your supplier need not charge you any foreign VAT. The VAT you owe because of the intra-Community acquisition should be paid on return. You can deduct this VAT again as input tax in the same return, in accordance with the applicable rules.

Example

You buy a consignment of shoes from a shoe manufacturer in France, which you then arrange to be transported to a warehouse in the Netherlands. You are considered to have effected an intra-Community acquisition in the Netherlands. You are liable for Dutch VAT on the purchase price of the shoes. You can deduct the same amount as input tax. You should register with the Dutch Tax and Customs Administration, which will give you a VAT identification number that you should pass on to the French shoe manufacturer. Once the latter has this information, he should not charge you any French VAT.

You are also considered to perform an intra-Community acquisition if you transfer goods for which you have not yet been able to find a buyer from your own business in another EU Member State to the Netherlands. Again, you must register for VAT in the Netherlands and file a VAT return in the Netherlands.

Example

You own a manufacturing plant in Italy. You have a stock of spare parts in a Dutch warehouse. Whenever you transport spare parts from Italy to the Netherlands, you are considered to:

Buyer of goods is known and has a VAT identification number

The procedure is different if you have already found a buyer for the goods and the goods are transported to the Netherlands for the purpose of delivering them to the buyer. If the buyer is buying the goods for business purposes, he is considered to perform an intra-Community acquisition in the Netherlands for which he is liable for VAT. You, in turn, are considered to perform an intra-Community supply in the Member State where you are established or from which the goods originate. In this case, the buyer must give you his VAT identification number.

Buyer of goods is known and does not have a VAT identification number

If you run a business in an EU country other than the Netherlands and you sell goods (with the exception of new motor vehicles) to private individuals or other persons without a VAT identification number in the Netherlands, you should charge VAT in the country where your business is established.

If you meet certain conditions, however, you can make use of the distance sales regulation.

You are importing goods into the Netherlands

Goods entering the Netherlands from outside the EU must be cleared with Customs, following which they can circulate freely within the EU. You will need to pay Customs the VAT owed on the imported goods, although you can then deduct or reclaim this charge as input tax if the import declaration form indicates that the goods are intended for you. In other words, the goods must have been imported in your name. Goods entering the Netherlands from outside the EU should be declared to Customs.

You may also make use of a fiscal representative. He can apply the ‘reverse-charge mechanism on import‘ on your behalf. In that case you do not need to pay Customs the VAT owed on the imported goods.

Example

You buy goods in Morocco and arrange for them to be transported to the Netherlands. You declare these as having been imported by you. You are liable for Dutch VAT on the customs value of the goods. You then sell the goods to Dutch entrepreneurs. You are not liable for Dutch VAT on this transaction as the VAT charge is transferred to your customers. You are entitled to reclaim the VAT you paid when you imported the goods.

Please note:

You are liable for Dutch VAT if you sell the goods to private individuals. You should pay this VAT by filing a return. When you complete your VAT return, you may then deduct the VAT you paid when you imported the goods as input tax. You must self-assess the VAT due on your sale. You can deduct the amount of input VAT paid at the time the goods were imported from your VAT declaration.

You are supplying goods to a customer in the Netherlands

If you, as a non-resident entrepreneur, supply goods to a Dutch entrepreneur, you do not normally have to deal with VAT, because the levy of VAT is often transferred to the buyer of the goods. This means that you, the supplier, do not owe tax, but that the buyer of the goods has to pay the VAT. In the following two situations, the buyer of the goods should pay the VAT:

• The buyer of the goods is an entrepreneur who is based in the Netherlands or has a permanent establishment in the Netherlands.
• The buyer of the goods is a corporate body based in the Netherlands.

Please note:

If the VAT charge is transferred to the buyer, you are not allowed to add VAT to the invoice.

If you are a non-resident entrepreneur, you make supplies in the Netherlands and you are liable for VAT on these supplies (for example, because the buyer is either a private individual or another entrepreneur who is not established in the Netherlands), you must in any event register with the Dutch Tax and Customs Administration and you must file a VAT return in the Netherlands.

Example

You are an exhibitor at a computer trade fair in the Netherlands. When you transport computers to the Netherlands in connection with this trade fair, you are considered to perform an intra-Community acquisition of goods. You are required to register with the Dutch Tax and Customs Administration and file VAT returns. If you subsequently sell the goods in question to private individuals, you are liable for Dutch VAT on these sales. If you subsequently sell them to Dutch entrepreneurs, the reverse-charge mechanism applies, which means that it is the buyer who incurs the VAT charge.

You are performing an intra-Community supply from the Netherlands

You perform an intra-Community supply from the Netherlands. You are considered to perform an intra-Community supply if you sell goods to an entrepreneur in another EU Member State. Intra-Community supplies are zero-rated. The buyer is considered to perform an intra-Community acquisition in the EU Member State for which the goods are destined. In other words, the VAT charge arises in the country of destination.

Even if you transport your own goods from the Netherlands to another EU Member State (for example, if you move goods to another company of your own), you are still considered to perform an intra-Community supply in the Netherlands and an intra-Community acquisition in the country of destination. Even though intra-Community supplies are zero-rated, you will still need to register with the Dutch Tax and Customs Administration if you perform an intra-Community supply from the Netherlands. You must declare the intra-Community supply both in your VAT return and in a Declaration of Intra-Community Supplies.

Zero-rating of intra-Community supplies

The following conditions must be met in order for a transaction to be regarded as an intra-Community supply of goods:

• The goods must physically be shipped to another EU Member State. You must have documentary evidence for this, such as order forms, letters of confirmation and freight documents. A single document is generally not sufficient. The important thing is to have a set of related documents with which to prove your position.
• The buyer must be an entrepreneur with a VAT identification number in the country to which the goods are shipped.

If these conditions are not met, for example because the buyer is a private individual and does not have a VAT identification number, the supply is not considered to be zero-rated. This means that you should charge your customer VAT and pay it by filing a VAT return.

Please note:

You should state both your own Dutch VAT identification number and your customer’s VAT identification number in your invoice.

Example

You buy goods in China and import them into the Netherlands. You then transfer the goods to a business of your own in France. This means that the import of the goods into the Netherlands is followed by an intra-Community supply. You are required to declare the intra-Community supply in the Netherlands, but may at the same time deduct the VAT you were charged on the import transaction. You are also required to submit a Declaration of Intra-Community Supplies for the quarter in which you transferred the goods to your own business in France. You should state your French firm’s VAT identification number in this Declaration. You may, if you wish, use the services of a fiscal representative for the purpose of performing the import transaction, declaring VAT and completing the Declaration of Intra-Community Supplies.

You are exporting goods from the Netherlands

A transaction is regarded as an export transaction if it involves the shipment of goods to a non-EU destination. The transaction is zero-rated, irrespective of whether the goods are sold to a private individual or an entrepreneur. You are entitled to apply zero-rating only if you have documentary evidence to prove that the goods are actually being exported.

Export declaration

If you are exporting goods, you must declare the transaction to Customs. You may submit an export declaration yourself, but you may also arrange for a customs agent to do so on your behalf. You may also declare the export at a customs office on the EU’s external border. For further information, please contact the Tax Information Line. Please note that this is a Dutch-language line.

You are performing distance sales

If you run a business in an EU country other than the Netherlands and you sell goods (with the exception of new vehicles) to private individuals or other persons without a VAT identification number, you should charge VAT in the country where your business is established.

If you meet the following two conditions, however, you are performing distance sales and should pay VAT in the Netherlands on these sales:

• You deliver the goods to the buyer in the Netherlands. You can do this yourself, but also instruct another business to do this on your behalf. The main point is that the goods were transported by you or at your expense.
• The total amount of the sales to Dutch private individuals or other persons without a VAT identification number during a calendar year should exceed EUR 100,000.

If you perform distance sales, you should register with Belastingdienst/Limburg/kantoor Buitenland.

Please note:

If you exceed the threshold of EUR 100,000 in a particular year, you will not be subject to a threshold in the following year. This means that you will be liable for Dutch VAT on all your distance sales, irrespective of their value.

Option

You may opt to pay Dutch VAT on all your distance sales, even if you do not expect them to exceed the threshold value. To make use of this option, you will need to file a request in your own EU Member State.

Excise goods

The threshold of EUR 100,000 does not apply to excise goods, i.e. products subject to excise duty. With regard to excise goods, such as beer and wine, you always have to pay VAT in the Netherlands, even if the total amount is less than EUR 100,000.

Letting immovable property

The letting of immovable property is normally exempt from VAT. This exemption does not apply to:

• the letting of tools and machines which have been permanently installed;
• the letting of accommodation in hotels, guesthouses, bungalow parks and other leisure accommodation;
• the letting of parking spaces for vehicles and the letting of moorings and storage facilities for vessels;
• the letting of immovable property if the landlord and the tenant agree not to make use of the exemption. This is known as opting for taxed rent.

If you are a non-resident entrepreneur and are letting immovable property to an entrepreneur established in the Netherlands, the Dutch entrepreneur is charged VAT on the rent.

Opting for taxed rent

Opting for taxed rent means that the landlord and the tenant choose not to apply the VAT exemption. It is only possible to ask for the exemption to be waived if the tenant may deduct at least 90% of the VAT charged on the rent as input tax. The great advantage of opting to tax is that the landlord can deduct the VAT charged on the purchase of the property and on the cost of maintenance. This allows him in turn to charge a lower rent.

Selling immovable property

The sale of immovable property is normally exempt from VAT. This exemption does not apply to:

• the sale of (a part of) a building and land within two years after its first occupation. If the buyer is a Netherlands-based entrepreneur, the VAT owed is levied from the Dutch entrepreneur;
• the sale of a building site. If the buyer is a Netherlands-based entrepreneur, the VAT owed is levied from the Dutch entrepreneur;
• the sale of immovable property whereby the vendor and the buyer jointly ask for the exemption to be waived. This is only possible if the buyer can deduct at least 90% of the VAT charged as input tax. In that case, the VAT owed is always levied from the buyer, regardless of the country where the latter is based.

Letting holiday homes

Letting a holiday home is regarded as a professional activity, which means that the landlord is classified as an entrepreneur. This does not apply if you have bought the property in question for the purpose of occupying it yourself and if you only sporadically let it to third parties. If you let the property for at least 140 days a year, the tax authorities will assume in any event that you are liable for VAT. The VAT rate for the letting of holiday accommodation is 6%.

Please note that a holiday home in the Netherlands is not considered to constitute a permanent establishment. If you let a holiday home in the Netherlands, you will nevertheless be regarded as a non-resident entrepreneur. If the tenant is a private individual, you will be liable for VAT. If you let a holiday home to an entrepreneur (for example, a firm managing a holiday park), the entrepreneur will need to pay the VAT owed on the rent.

Calculating VAT: rates and exemptions or reverse-charge

If you supply goods or render services in the Netherlands, you are not always required to charge VAT. If an exemption or reverse-charge mechanism applies, you do not have to charge VAT. The applicability of an exemption or a reverse-charge mechanism should be clear based on the invoice relating to the activity. If you have to charge VAT, one of three different VAT rates will apply.

What should you charge VAT on?

The price charged for a good or service often consists of a number of different elements. In the case of a taxable supply, the basis of taxation is the total sum that you charge your customer, i.e. including postage, travel expenses, telephone charges, packaging (excluding deposits on returnable bottles) and so forth.

Acquisition in the Netherlands from another EU country

In the event of a purchase made in the Netherlands of goods from another EU Member State, the VAT charge is based on the amount your supplier charges you. You should convert this figure into euros if it is not stated in euros, using the rate of exchange on the date on which the VAT charge arises.

xemption

Various types of supply are exempt from VAT. Please note that you cannot deduct input tax in relation to an exempt supply. In other words, you are not entitled to recover the VAT charged on the costs you incur in making such supplies. Broadly speaking, the following supplies are exempt from VAT:

• educational services;
• services in the medical sector performed by acknowledged medical professionals and institutions;
• services rendered by sports clubs to their members;
• certain supplies of goods and services of a social and cultural nature;
• financial services;
• services performed by composers, writers and journalists.

Reverse charge mechanism

If no exemption is applicable, you will owe VAT. With regard to supplies and services to Dutch entrepreneurs to which the reverse-charge mechanism applies, you are not allowed to charge VAT. The reverse-charge mechanism will apply if the buyer of the goods or services:

• is an entrepreneur who is based in the Netherlands or has a permanent establishment in the Netherlands; or
• is a corporate body based in the Netherlands.

However, you may reclaim the VAT on costs you incurred in relation to these activities as input tax.

VAT rates

If a supply is not exempt and is not subject to the reverse-charge mechanism either, it is automatically taxed at one of three possible rates: the 0% rate, the 6% rate or the 19% rate.

0% rate

The 0% rate applies to entrepreneurs who do business outside the Netherlands. This usually involves the supply of goods to other countries. The sections entitled You are performing an intra-Community supply from the Netherlands and You are exporting goods from the Netherlands tell you in which cases you may apply the 0% rate. By applying the 0% rate you apply a kind of exemption, but are still entitled to deduction of input tax.

6% rate

The low rate of VAT is 6%. This rate applies, for example, to the supply, import or intra-Community acquisition of:

• food, drink (excluding alcoholic beverages) and the ingredients used in their production;
• cattle, sheep, goats, pigs and horses;
• medicines;
• books, daily newspapers and magazines;
• agricultural and horticultural seeds;
• ornamental plants.

The following services are also taxed at 6%:

• passenger transport;
• paintwork on dwellings that are over 15 years old;
• hairdressing services;
• bicycle repairs;
• the letting of holiday homes;
• performances by performing artists;
• the granting of admission to:
  - circuses;
  - travelling fairground attractions;
  - musical and theatrical performances;
  - sports events.

19% rate

In all other cases, you should charge VAT at the basic 19% rate. In other words, the 19% rate applies to supplies that are not exempt, not subject to the reverse-charge mechanism, not zero-rated and not taxed at 6%.

Deducting and reclaiming VAT

If you buy goods or incur other costs in the Netherlands on behalf of your firm, your suppliers will charge you VAT. You will also need to pay VAT if you import goods into the Netherlands from non-EU countries, or if, acting from an establishment in the Netherlands, you purchase goods from another EU Member State. The VAT you are charged on your purchases and costs is known as ‘input tax’. You are entitled to deduct the input tax from the VAT you have to pay in the Netherlands. If the amount of input tax is larger than the amount of VAT you have to pay, you are entitled to a refund of the difference. Even if you do not supply any goods or services in the Netherlands, you are still entitled to recover the VAT.

Deducting or reclaiming VAT

VAT on an invoice

If you buy goods or services in the Netherlands, your supplier will charge you VAT. The first requirement, in order to deduct or recover this VAT, is the presence of a proper invoice. A proper VAT invoice should include the following information:

• the supplier’s name and address;
• the supplier’s VAT identification number. The VAT identification number is the number under which an entrepreneur is registered with the Tax and Customs Administration. A Dutch VAT identification number always consists of a total of 14 figures and letters, starting with the country code NL applicable to the Netherlands. For example: NL001234567B01.
• the customer’s name and address;
• the invoice number: invoices should be numbered consecutively, where necessary in several sequences;
• the invoice date;
• date of the supply or the service;
• the quantity and type of goods supplied;
• the quantity and type of services rendered;
• for each rate or exemption:
  - the unit price exclusive of VAT;
  - any discounts if these are not included in the unit price;
  - the VAT rate applied;
  - the consideration;
• in case of advance payment: the date of payment if this date is different from the invoice date;
• the VAT amount.

In some situations, the invoice should also show the customer’s VAT identification number. This will be the case if an entrepreneur supplies goods to entrepreneurs in another EU country and in respect of certain related services (including transport services).If a reverse-charge mechanism applies, the customer’s VAT identification number should also be stated in the invoice.

In addition, the invoice has to show whether a special VAT facility applies, i.e.:

• trade in used goods;
• application of a reverse-charge mechanism;
• application of a VAT exemption;
• intra-Community supplies of goods.

Petrol receipts

When supplying fuel for land vehicles, there is no need to include the customer’s name and address in the petrol receipt. In order to deduct the VAT concerned, you should comply with the condition that it should be possible to trace your name and address as a customer through the way payment is made. You can be traced as a customer when you make payments through your bank/giro account or by using a credit card or tank pass.

Food and drink in catering establishments and exemptions

When food and drink is supplied for immediate consumption in catering establishments, there is no need to issue an invoice. This also applies to entrepreneurs performing exempt activities: they do not have to issue an invoice in respect of that activity.

Public transport and taxis

There is no need to issue an invoice when persons travel by public transport or taxi.

Supplementary requirement for invoices under the agricultural scheme

Entrepreneurs in the agricultural industry are entitled to an exemption under a special scheme, under which they do not have to include VAT in their invoices. If you buy goods from an entrepreneur applying this exemption, you are still entitled to deduct 5.1% of the invoice amount as input tax. The supplier must, however, make clear on his invoice that he is entitled to this special exemption.

VAT paid on imported goods

In order to deduct or reclaim VAT paid on imported goods, you must have the original import documents specifying the VAT charge in your possession. If you have instructed a customs agent to handle the import transaction on your behalf, you will not have the original import document yourself. In that case, the invoice issued by the customs agent will state the VAT charge which you paid on the imported goods and which you are entitled to deduct or reclaim.

VAT owed on intra-Community acquisitions

You should include in your VAT return any VAT you owe as a result of intra-Community acquisitions of goods in the Netherlands. You can deduct this VAT as input tax at the same time.

What conditions apply to deducting or reclaiming VAT?

You may only deduct or reclaim the VAT you have paid when buying goods and services if you comply with the following two conditions:

• You use the goods and services for professional purposes, i.e. for your own business. In other words, the VAT you pay on goods and services intended for your personal use is not deductible.
• You use the goods and services for taxable activities. You may not deduct VAT as input tax if you use the goods and services in question for exempt activities.

Please note:

Zero-rated supplies and supplies where the VAT charge is transferred to the buyer are also regarded as taxable supplies.

Under no circumstances are you entitled to deduct as input tax the VAT paid on food and drink in hotels, restaurants and other catering establishments. You are entitled to deduct the VAT charged on the cost of accommodation and suchlike provided that you have incurred the costs in question for the purpose of performing taxable activities.

Mixed use

If you use certain goods or services not just for the purpose of performing taxable activities, but also for exempt or non-business activities, you will need to divide the input tax into two components: a deductible component and a non-deductible component.

Example

You own a commercial property in the Netherlands. You let half the property to a shopkeeper, and the other half to an insurance agent. You charge the shopkeeper VAT, but not the insurance agent. When you have the building painted, you are entitled to deduct only half the VAT charged by the painters, as half the surface area is used for exempt activities.

Representation

If you are required to file a VAT return in the Netherlands or wish to claim a VAT refund in the Netherlands, you do not have to do this yourself. You are free to authorise a third party to represent you vis-à-vis the Dutch tax authorities. An authorised agent can:

• apply for a VAT refund on your behalf;
• file VAT returns;
• complete any other formalities.

Most authorised agents are experts, such as accountants or tax consultants, but there are no hard and fast rules for this. You are free to decide for yourself who to authorise and what type of business the agent is allowed to transact on your behalf.

Non-resident entrepreneurs without a permanent establishment may also use the services of a fiscal representative. However, this form of authorisation is subject to statutory requirements.

Please note:

Even if you appoint an authorised agent or a fiscal representative you still remain responsible for complying with your legal obligations. Even if you appoint an authorised agent or a fiscal representative you still remain a non-resident entrepreneur. Your customer is still required to pay VAT if you supply goods or services to an entrepreneur or corporate body established in the Netherlands.

You use the services of a fiscal representative

As a non-resident entrepreneur, you can appoint a fiscal representative to carry out your tax obligations. If you use the services of a fiscal representative, you are not normally required to register as a taxpayer for VAT with the Dutch Tax and Customs Administration. Customs agents looking after the import and export formalities for entrepreneurs often also act as fiscal representatives. On your behalf, the fiscal representative can:

• file the VAT return;
• file the Declaration of Intra-Community Supplies;
• apply the reverse-charge mechanism on import.

Please note:

If you want to apply the reverse-charge mechanism on import, you must use the services of a fiscal representative.

Requirements fiscal representative

Under the law, a fiscal representative has to meet the following requirements:

• The fiscal representative should be based in the Netherlands.
• The fiscal representative should provide financial security for VAT purposes.

Reverse-charge mechanism on import

The reverse-charge mechanism on import entails that you do not owe the import VAT immediately when filing the import declaration. Instead, the VAT owed can be paid on the periodic VAT return. As a non-resident entrepreneur, you cannot obtain a licence yourself for transferring the import VAT. However, you can use the services of a fiscal representative. A fiscal representative can obtain a licence for transferring the import VAT. The fiscal representative declares the VAT you owe on import in the VAT return for the period concerned. In the same return, he again deducts this VAT as input tax. This means that you are not required to pre-finance this VAT on import.

Competent tax office and registration

As a non-resident entrepreneur dealing with VAT, you need to know which tax office is competent in your case and how you should register with the Tax and Customs Administration.

Competent tax office

The Heerlen tax office (Belastingdienst/Limburg/kantoor Buitenland) handles all tax matters relating to non-residents, including private individuals and entrepreneurs alike. In other words, it deals with non-resident entrepreneurs who are required to pay or wish to reclaim Dutch VAT.

Please note:

If you have appointed a fiscal representative, your VAT matters are handled by your fiscal representative’s local tax office.

Registration

For non-resident entrepreneurs dealing with VAT, a distinction can be made between:

• entrepreneurs who file periodic VAT returns. If you, as a non-resident entrepreneur, owe VAT in the Netherlands or make an intra-Community supply or acquisition of goods, you should register for VAT with the Tax and Customs Administration;
• entrepreneurs not obliged to file VAT returns who submit an application for a VAT refund. If you, as a non-resident entrepreneur, submit an application for a VAT refund, the Tax and Customs Administration can only deal with your request if you have registered as a non-resident entrepreneur with the Tax and Customs Administration.

To register with the Tax and Customs Administration, please write to Belastingdienst/Limburg/kantoor Buitenland.

The Tax and Customs Administration will first send you a general questionnaire, which you are obliged to complete and return. Depending on the nature and scope of the activities in the Netherlands, the Tax and Customs Administration will decide if you should file periodic VAT returns or whether it will be sufficient to submit an Application for Refund form.

VAT Return

Completing return forms

If you are required to submit VAT returns, you will be sent VAT returns to complete on a regular basis, generally once a quarter. You are obliged to complete and sign each return, and return it within two months of the end of the period it covers. This is also the case even if you have not conducted any activities in the Netherlands during this period, and still applies even if the value of the VAT refund to which you are entitled is greater than your VAT liability.

Paying VAT

If, after deduction of any input tax, the net result is a VAT liability, you are required to pay this amount within two months of the end of the period to which your VAT return relates. The date on which the tax authorities’ account is credited with your payment is taken as the date of payment. The information accompanying the VAT return describes the various methods of payment you may use.

Please note:

The tax authorities may issue an additional assessment, plus a penalty if appropriate, if you fail to submit a VAT return in good time or fail to pay the VAT owed in good time.

VAT refund

If the amount of input tax is larger than the VAT charge, your VAT return is treated as an application for a VAT refund. Generally speaking, the tax authorities will inform you in writing within six months whether they have decided to grant your request for a VAT refund.

Administrative obligations

The first time you submit a VAT return, you should enclose all original invoices and receipts you have received, as well as copies of sales invoices you have sent. On every subsequent occasion you file a VAT return, you should enclose a statement detailing the invoices relating to the figures quoted in the return.

In order to check the accuracy of the information in your VAT return, the tax office may ask you for:

• copies of invoices you have issued
• original invoices and receipts you have received
• other types of documentary evidence

The tax authorities are entitled to adjust your VAT returns for up to five years after the end of the year in question by issuing an assessment.

Declaration of Intra-Community Supplies

If you perform zero-rated intra-Community supplies of goods from an establishment in the Netherlands, you are required to submit a Declaration of Intra-Community Supplies (in Dutch: Opgaaf intracommunautaire leveringen) at the end of each quarter. Your declaration should specify:

• your customers’ VAT identification numbers;
• the total value of the intra-Community supplies made to each individual customer from the Netherlands during that quarter.

Explanatory notes

The Declaration of Intra-Community Supplies is accompanied by a set of explanatory notes in three languages, including English. If you wish, you can download the explanatory notes.

Please note:

You may incur a penalty if you do not submit your Declaration of Intra-Community Supplies in good time, or if your declaration is inaccurate or incomplete.

Application

The first time you make an intra-Community supply from an establishment in the Netherlands, you should apply for a Declaration of Intra-Community Supplies to Belastingdienst/Limburg/kantoor Buitenland.

Submission

The Declaration of Intra-Community Supplies should not be enclosed with your return, but should be submitted separately to:

Belastingdienst/Central Liaison Office
Antwoordnummer 28000
7600 XW Almelo
The Netherlands

Please note:

The completed and signed Declaration of Intra-Community Supplies should be filed by the last day of the month following the calendar quarter. This day is stated at the top of the form. If you did not perform any intra-Community supplies during a particular quarter, you are not required to submit a Declaration of Intra-Community Supplies.

Statistics declaration to the Central Bureau of Statistics (CBS)

You must send a monthly statement to Statistics Netherlands (CBS) if:

• the value of your intra-community supplies exceeds € 900,000
• the value of your intra-community purchases exceeds € 900,000

If you are dealing with supplies as well as purchases and only one of these activities exceeds the limit of € 900,000, you only have to state the activity to which this applies.

If you exceed a limit for the first time, the CBS will request you to submit a statistics declaration.

Electronic declaration

You have to make the declaration on line. To this end, you can use the free IRIS software package or your own application.

Further information

CBS/Intrastat Infodesk
Postbus 4481
6401 CZ Heerlen
The Netherlands
Telephone: (+31) 45 570 79 20
E-mail Infodesk CBS

Application for a VAT refund

You may apply for a VAT refund if you satisfy the following conditions:

• You are a business entrepreneur with registered office outside the Netherlands.
• You do not perform activities in the Netherlands.
• Dutch VAT (btw) has been charged to you.

Application for a VAT refund can be made using the form ‘Verzoek om teruggaaf omzetbelasting (door een niet in Nederland gevestigde ondernemer)’ (Application for a VAT refund (by an entrepreneur with registered office outside the Netherlands). You can download this form.

Please note!

Your application will be dealt with after you have registered as a foreign entrepreneur. If you have no registration number you can apply for this number using the form ‘Aanvraag Registratienummer buitenlandse onderneming’. (Application for Registration Number foreign business). You can download this form.

Non-resident entrepreneurs who are not obliged to file VAT returns can request a refund of Dutch VAT. Your request will only be dealt with if you have registered as a non-resident entrepreneur with the Tax and Customs Administration. You submit the application for a VAT refund by means of a form which is the same throughout the EU. You can download this form.

Submission of application

You should submit the application within six months of the end of the calendar year in which the entitlement to a refund arose. The application should concern a minimum period of three months and a maximum period of one calendar year. The refund period may be shorter than three months if it involves the remaining part of a calendar year. The tax amount you reclaim should be at least:

• EUR 200 if the application relates to a period of at least three months, but not a full calendar year;
• EUR 25 if the application relates to a calendar year or the remaining part of a calendar year.

In general, the Tax and Customs Administration will inform you in writing within six months whether your application for a refund has been granted.

Additional assessment

Should it transpire that you have wrongfully been granted a refund, the tax authorities are entitled to issue an additional assessment to recover the value of the refund, plus a penalty should this be deemed necessary. This entitlement lasts for a period of five years from the end of the year in question.

Objections and appeals

You are entitled to object if you do not agree with a decision taken by the tax authorities. You should lodge an official notice of objection within six weeks with Heerlen tax office:

Belastingdienst/Limburg/kantoor Buitenland
Afdeling Omzetbelasting
Postbus 2865
6401 DJ Heerlen
The Netherlands

You will be notified in writing of the decision that is taken on your objection. You are entitled to appeal against this decision to the court. The letter informing you of the decision on your objection will contain information on how you should proceed if you wish to appeal.

Confirmation of entrepreneur status

You should enclose a statement with your application confirming that you are liable for VAT in your home country. Entrepreneurs established in an EU Member State should apply to their own tax authorities for this statement, which is valid for a period of one year. Entrepreneurs established in a non-EU country who wish to apply for a VAT refund are entitled to produce other documentary evidence to show that they are classified as entrepreneurs.

Example

If you are an entrepreneur in the United States, you can ask your tax authorities for Form 6166. With this form, you can show the Dutch Tax and Customs Administration that you are an entrepreneur.

Original invoices

You should enclose with your application the original invoices to which the application relates. These will be returned to you once your application has been processed.

Further information

If you would like more information, please contact the tax office in Heerlen. The address is as follows:

Belastingdienst/Limburg/kantoor Buitenland
Afdeling Omzetbelasting
Postbus 2865
6401 DJ Heerlen
The Netherlands

HTML Version:

<h1>Netherlands VAT At A Glance</h1>

Text Version:

Netherlands VAT At A Glance

Article Url: