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Netherlands

 

News & Tips

VAT representative [Tip]

Foreign companies can voluntarily use a Dutch VAT representative to enjoy some beneficial VAT scheme, such as the import VAT deferred and VAT zero rating under the VAT warehouse. New rules have been adopted [23/12/2013] in connection with the guarantee [5% of VAT due with min. € 5.000 and max. € 100.000 or € 500.000 depending on the categories of goods].


New procedure [Idep] for submitting Intrastat returns [01/01/2015]

The procedure for submitting intrastat returns is being changed. With effect from the returns relating to January 2015 data, intrastat returns can only be submitted via the internet application Idep.


Reduced VAT rate for maintenance & renovation works abolished [01/07/2015]

The Netherlands is to abolish the temporary reduced 6% VAT rate on renovation, reconstruction or repair of housing with effect from July 1st, 2015. As from that date, the standard rate of 21% will apply to such supplies. The reduced VAT rate will still continue to apply to painting, plastering and insulation services.

More VAT News & Tips - Netherlands


 

DOING BUSINESS IN THE NETHERLANDS [NL] - VAT GUIDE

 

General

VAT Directive

The Netherlands

What is the structure of the VAT number?

Each individual VAT identification number shall have a prefix in accordance with ISO code 3166 - alpha 2 - by which the Member State may be identified.

 

Dutch VAT numbers have 14 characters [NL + 9 digits + B + 2 digits].

 

What is the local name of the tax?

 

Omzetbelasting [BTW, OB]

 

VAT rate

VAT Directive

The Netherlands

 VAT rates

Member States must apply a standard VAT rate [not lower than 15%] which must be the same for the supply of goods and for the supply of services.

Member States may apply either one or two reduced rates [not lower than 5%] only to supplies of goods or services as listed in the Annex III of the VAT Directive.

 

The Netherlands applies a standard VAT rate of 21% and one reduced rate of 6%.

See VAT rates applied in the EU.  

VAT return

VAT Directive

The Netherlands

How is the tax period determined? 

The tax period shall be set by each Member State at one month, two months or three months.

Member States may, however, set different tax periods provided those ones do not exceed one year. 

Monthly/Quarterly/Yearly

Your company has to report its VAT position by filing periodical VAT returns on a quarterly basis [standard tax period]. Monthly reporting period can be opted for [or imposed by the tax authorities] if the VAT payable per quarter exceeds € 15.000. Yearly reporting period can also be opted for if payable VAT balance does not exceed € 1.883 a year.

 

When should periodical VAT return be filed?

The VAT return shall be submitted by a deadline to be determined by Member States.

That deadline may not be more than two months after the end of each tax period.

 

Periodical VAT returns must be submitted by electronic means to Dutch VAT authorities before the end of the month [last day of N+1] following the tax period. However, for foreign taxpayers not established in the Netherlands but registered for VAT purposes in this country, a two-month period applies [last day of N+2].

 

Statement

VAT Directive

The Netherlands

Annual recapitulative statement

Is this requirement laid down in the country and what is the filing deadline?

Member State may require taxable persons to submit a return in respect to all transactions carried out in the preceding year.

That return shall provide all the information necessary for any adjustments.

 

Your company is not required to file any summarizing annual VAT return in the Netherlands.

Recapitulative statement of intra-EU supply of goods [European Sales Listing - ESL]

Are quarterly filings allowed by the country and what is the filing deadline?

The recapitulative statement shall be drawn up for each calendar month.

However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency.

The recapitulative statement shall be submitted within a period not exceeding one month.

 

The recapitulative statement [ESL] must be drawn up for each calendar month provided the threshold of € 100,000 of intra-EU transactions per quarter has been exceeded [01/01/2016: € 50,000]. Otherwise, periodicity is determined on a quarterly basis. ESL must be filed by electronic means before the last day of the month following the reporting period [month/quarter] to which it relates.

Payment

VAT Directive

The Netherlands

What is the payment deadline?

Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. 

Member States may, however, set a different date for payment of that amount.

 

 

The VAT due should be paid by filing deadline for the VAT return to which it relates. 

Are interim payments required?

Member States may require interim payment to be made.

Interim payments are not required.

VAT refund

VAT Directive

The Netherlands

VAT refund for companies VAT registered in the country.

Is any VAT credit automatically carried forward or refunded?

Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.

 

A VAT credit is automatically refunded by Dutch VAT authorities. No carry-forward mechanism. 

Special measures for foreign companies

VAT Directive

The Netherlands

Optional reverse charge [art. 194 of the VAT Directive] for non-resident supplier.

SUPPLY OF GOODS

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge does basically  apply to supplies of goods carried out by suppliers not established in the Netherlands provided the customer is a taxable person established in the Netherlands or a non-taxable legal entity established in the Netherlands.

Optional reverse charge [art. 194 of the VAT Directive] for non-resident provider.

SUPPLY OF SERVICES

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge does basically  apply to supplies of services carried out by suppliers not established in the Netherlands provided the customer is a taxable person established in the Netherlands  or a non-taxable legal entity established in the Netherlands.

Have simplification measures been taken to avoid registration of the foreign company for the goods held on consignment in the country?

 

Yes

Special arrangements apply for consignment stock. Foreign taxpayers are therefore not VAT required to be registered in the Netherlands provided the conditions are met.

Do special arrangements apply to "call-off-stock"?

 

Yes

Special arrangements apply for call-off-stock. Foreign taxpayers are therefore not required to be VAT registered in the Netherlands provided the conditions are met.

 

Triangulation can be applied when the middleman (B) is VAT registered [as a non-established company] for others supplies in the 3rd country [Member State of destination]?  

Triangulation simplification measures can be applied even if the middleman B is VAT registered as a non-established company in the Netherlands [Member State C]. Furthermore, triangulation scheme is not applicable in chain transaction  involving four or even more parties.

 

VAT on import

VAT Directive

The Netherlands

VAT warehousing regime

Member States may exempt the importation of goods and the supply of goods which are intended to be placed under warehousing arrangements other than customs warehousing.

 

The Netherlands has introduced VAT warehousing regime applicable under specific conditions.

VAT on importation – Postponed accounting via the VAT return.

Is it possible for a company to pay the import VAT via the periodical VAT return?

Member States may provide that VAT on importation does not need to be paid at the time of importation on condition that it is entered as such in the VAT return  to be submitted.

 

Postponed accounting via the VAT return is possible. 

 

Miscellaneous

VAT Directive

The Netherlands

Intrastat Threshold  

Dispatches: € 1,200,000

Arrivals : € 1,000,000

Distance Sales - Threshold  

€ 100,000

See various thresholds applied in the EU

 

Ministry of Finance   website

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