Import of products to the Netherlands
The import of products originating in non-EU countries to Holland is generally taxable for VAT purposes, regardless of whether the import is performed by a private, taxable, non-taxable or exempt entity. Therefore VAT is usually due at import and is normally transferred to the Dutch Customs.
License for VAT deferment
Holland has adopted a special system in connection to Art. 23, Act on VAT, resulting in the issue of Article 23 licenses. These licenses enable importers to postpone the VAT payment, rather than transfer the amount upon import. The system shifts the VAT liabilities to the recurrent VAT returns. Therefore the import VAT is declared in the respective periodic return but may be deducted as well in case no full deduction of VAT is applied. So VAT is not actually paid on import, which brings interest and cash-flow advantages. The license for VAT deferment is only issued to taxable, non-taxable and exempt entities (not issued to natural persons).
Requirements for VAT deferment license
Generally, the following requirements must be fulfilled in order to apply for a VAT deferment license:
- the candidates should either reside in Holland or have fiscal representatives / permanent establishments in the country;
- the candidates should regularly import goods;
- the candidates should keep transparent records with respect to the goods for import.
The importation of delivery trucks and private cars is subject to different conditions.
Application for VAT deferment license
Below is a non-exhaustive list of the information that must be included in the VAT deferment application:
- VAT/Tax ID number of the importer/applicant;
- Importer/applicant name;
- Type of product for import into Holland;
- Quantity of product;
- Envisaged frequency of import (annually);
- Price of the products for import (annually);
- Country of origin of the product (non-EU).
The tax authorities in Holland must process the application in an 8-week period.
Our agency can quickly make the necessary arrangements for issue of Article 23 license for VAT deferment. Contact us for more information.