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Postponement of VAT over import of goods from outside the EU into the Netherlands

The import of goods from outside the EU into the Netherlands is subject to Dutch VAT. In the standard situation VAT is due at the moment the goods are imported. The import VAT can (afterwards) be deducted as input VAT in the periodic VAT return that is to be filed quarterly or monthly. However, in case a company applies for an article 23 VAT license (hereafter: ‘License’), no import VAT is to be paid at the moment of import. The payment of the import VAT due can be postponed till the moment the VAT return is to be filed. As a result the input VAT equals the amount of import VAT and no cash payment has to be made.

In order to successfully apply for a License the following conditions have to be met and the following information must be provided to the Dutch tax authorities:

  • The tax / VAT identification number of the entrepreneur;
  • Name of the entrepreneur;
  • Type of goods that are going to be imported into the Netherlands;
  • The quantity and value of the goods;
  • Frequency of import of goods; the entrepreneur needs to import goods on a regular basis (thus not once in two years).
  • From which non-EU country the goods will be imported;

Also a foreign company can apply for a License provided that the company has appointed a tax representative for this purpose. The Dutch tax authorities are required to deal with the application of the License within 8 weeks provided that the information given is complete.

For more information contact Jan van Wijngaarden, Partner, Solid4U, The Netherlands