The Belastingdienst is advising that UK importers into the Netherlands must act to apply for VAT deferment … What’s the picture in the EU? Author: lisa.kuntze Published on: June 14, 2020 Published in: Blog. This means that in most cases the VAT does not have to be paid on import. Avoiding paying VAT on imports. netherlands: article 23 vat deferment license Foreign companies importing goods into the Netherlands have the opportunity to pay no VAT to the Dutch Customs. Increase your working capital via Dutch VAT deferment. The refund period varies per EU country. Depending on the Incoterms or Terms of Sale, the importer or exporter pays the VAT upon import into the EU. Dutch article 23 VAT deferral licence Import of goods into the Netherlands The importation of goods from outside the EU into the Netherlands is in principle a taxable event for Dutch VAT purposes irrespective of whether these goods are imported by a taxable person, a VAT will need to be paid upon import into the EU, unless the importer has a VAT deferment license (common in the Netherlands). The Dutch tax authorities are warning UK businesses that they will have to reorganise their VAT and customs arrangements to avoid incurring heavy import VAT bills. Due to the fact that VAT entrepreneurs can deduct the due VAT in the same VAT return, the entrepreneur does not actually pay VAT. With a deferment account you can defer the payment of the VAT on your own account. The VAT can then be paid when you file your VAT return. Technically, the VAT upon import into the Netherlands is still periodical payable, but it is followed by an immediate corresponding deduction when reported in the return. A deferment account is recommended when you regularly import goods to the Netherlands from countries outside of the European Union. The Netherlands has a special import VAT regime for companies importing goods, which results in a cash flow benefit. As foreign entrepreneur, you are not able to apply for an Article 23 permit yourself. The Netherlands is the only country in the European Union (EU) with a favourable import tax facility, called article 23 license VAT. Its properties: In principle, import duties and import VAT are immediately due upon importing goods into the Netherlands from a non-EU country. For example: when a non-EU company import goods into the EU, it needs to file a VAT return and pay the 21% VAT upfront. This license enables importers to avoid immediate payment of VAT upon importation (VAT deferral). In the Netherlands, Article 23 of the VAT Law grants the ability to postpone import VAT to the VAT return. An application can be made to the Dutch tax authorities for an Import VAT deferment license, also known as an Article 23 license.. Having an Article 23 license gives both resident and non-resident businesses the ability to import goods into the Netherlands … As a result, the import VAT Until now, the UK has not had a VAT deferment mechanism for imports. Technically, the VAT upon import into the Netherlands is still periodical payable, but it is followed by an immediate corresponding deduction when reported in the return. Effectively, no payment has to be made and hence a VAT cash flow benefit is realized. From 1 January 2021, entrepreneurs can declare VAT on import on their VAT return by means of VAT deferment. Import VAT exemption. The paid VAT will be paid back by the local tax authorities between 3 to 9 months later. However, the time that the VAT has to be paid can be deferred to the periodical VAT return (deferment scheme). The reverse-charge mechanism on import means that you are not required to pay the VAT on import immediately. Import VAT Deferment in Netherlands – Article 23 License. Netherlands, the goods are, in principle, subject to VAT. When do I pay VAT? VAT deferment system The main benefit of appointing a Dutch VAT fiscal representative is: It enables the application of the so-called “import deferment system”: precluding the need to pre-finance payable import VAT on the imports of goods from non-EU into Netherlands. This special scheme is possible only for importers holding an “article 23 permit”. However, such a deferment will be in place from 1 January 2021. Member States are able to determine the specifics of their own deferment scheme, which may apply to every importer or be limited to certain cases. Its properties: When goods are imported into the European Union (including the UK), import VAT is charged as a percentage of the value of the imported goods. If your business has an import VAT deferment license (Article 23 license), the Dutch import VAT due is reported in the Dutch VAT return, rather than being payable immediately. This can be overcome under the Dutch system for import VAT deferment relief. In order to do this, you will need an Article 23 permit. VAT numbers can be requested from the local government of EU countries, and can often be completed online. Effectively, no payment has to be made and hence a VAT cash flow benefit is realized. This can be overcome under the Dutch system for import VAT deferment relief.
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