This means that in most cases the VAT does not have to be paid on import. A deferment account is recommended when you regularly import goods to the Netherlands from countries outside of the European Union. The refund period varies per EU country. Until now, the UK has not had a VAT deferment mechanism for imports. In the Netherlands, Article 23 of the VAT Law grants the ability to postpone import VAT to the VAT return. As foreign entrepreneur, you are not able to apply for an Article 23 permit yourself. Import VAT exemption. The Netherlands is the only country in the European Union (EU) with a favourable import tax facility, called article 23 license VAT. 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. Import VAT Deferment in Netherlands – Article 23 License. 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. Due to the fact that VAT entrepreneurs can deduct the due VAT in the same VAT return, the entrepreneur does not actually pay VAT. 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. Increase your working capital via Dutch VAT deferment. 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. Its properties: As a result, the import VAT netherlands: article 23 vat deferment license Foreign companies importing goods into the Netherlands have the opportunity to pay no VAT to the Dutch Customs. Effectively, no payment has to be made and hence a VAT cash flow benefit is realized. With a deferment account you can defer the payment of the VAT on your own account. VAT will need to be paid upon import into the EU, unless the importer has a VAT deferment license (common in the Netherlands). When do I pay VAT? This special scheme is possible only for importers holding an “article 23 permit”. Netherlands, the goods are, in principle, subject to VAT. Effectively, no payment has to be made and hence a VAT cash flow benefit is realized. In order to do this, you will need an Article 23 permit. This license enables importers to avoid immediate payment of VAT upon importation (VAT deferral). 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. 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. Author: lisa.kuntze Published on: June 14, 2020 Published in: Blog. However, the time that the VAT has to be paid can be deferred to the periodical VAT return (deferment scheme). The paid VAT will be paid back by the local tax authorities between 3 to 9 months later. The Netherlands has a special import VAT regime for companies importing goods, which results in a cash flow benefit. Depending on the Incoterms or Terms of Sale, the importer or exporter pays the VAT upon import into the EU. Its properties: From 1 January 2021, entrepreneurs can declare VAT on import on their VAT return by means of VAT deferment. This can be overcome under the Dutch system for import VAT deferment relief. 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. 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 … However, such a deferment will be in place from 1 January 2021. What’s the picture in the EU? The Belastingdienst is advising that UK importers into the Netherlands must act to apply for VAT deferment … VAT numbers can be requested from the local government of EU countries, and can often be completed online. The VAT can then be paid when you file your VAT return. The reverse-charge mechanism on import means that you are not required to pay the VAT on import immediately. 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 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. This can be overcome under the Dutch system for import VAT deferment relief. Avoiding paying VAT on imports. In principle, import duties and import VAT are immediately due upon importing goods into the Netherlands from a non-EU country.
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