Postpone Paying VAT When Importing
Companies registered in the Netherlands can postpone paying VAT when importing goods into the Netherlands. Registering your company in the Netherlands can mean more administrative hassle than you want. Fortunately, there are other ways to still benefit from postponing VAT.
Foreign companies that are not registered in the Netherlands, but do wish to postpone VAT payment can use Fiscal Representation to do so.
What is Fiscal Representation?
Fiscal representation means that a company registered in the Netherlands acts as a representative of your company when it comes to filing taxes and maintaining the administration of the VAT. A special permit is needed for representing foreign companies for tax purposes. Customs Support Group has such a permit.
If you appoint a fiscal representative, you can use a scheme called “article 23”. Dutch VAT law has the possibility to postpone the charging of VAT upon import. The liability to account for VAT is shifted from customs to the importer of record. That importer “self imposes” VAT due upon receiving the goods and filing its periodical VAT return. The self computed and self-imposed VAT may be deducted as input VAT in the same VAT return, avoiding any cash flow.
Contact Us
If you have any questions about fiscal representation, please contact one of our specialists. They are happy to help.