Article 23 License in the Netherlands

Article 23 license in the Netherlands can be of importance to those who are involved in import-export activities. Through it, companies can reverse-charge import VAT – our team of Dutch lawyers can explain the procedures, the eligibility requirements, and other matters related to Article 23 Import VAT Deferment in the Netherlands.

What is the Article 23 license in the Netherlands?

In the list below, our lawyers in the Netherlands explain the mechanism:

• in general, when an entity imports goods into the Netherlands, it needs to pay VAT on the imported products at the moment when the import is made;
• by using the rules of the Article 23 Import VAT Deferment in the Netherlands, the entity is allowed to register the respective amount of VAT on its next VAT return, rather than to pay the VAT at the time of the import;
• through this, the company can simply import goods into the Netherlands without having to complete this financial procedure, which will be later be completed through the company’s bookkeeping records.

Are there any eligibility criteria?

Yes. The rules created under the Article 23 License in the Netherlands are applicable to certain types of entities, as reflected below:

1. the company needs to be registered for VAT purposes in the Netherlands;
2. it is also necessary for the company to file VAT reports in the Netherlands;
3. the company must also be compliant with the Dutch Tax Authority.

Can foreign companies benefit from the rules of the Article 23 Import VAT Deferment in the Netherlands?

Yes. Foreign companies (by which we refer to both those that are registered in the EU and those that are registered outside the EU) can benefit from the rules of the Article 23 License in the Netherlands, but only as long as they have appointed a fiscal representative in this country. Our team of lawyers in the Netherlands can explain more about the procedure (we can also act as fiscal representatives).

Can I use this system for only one shipment into the Netherlands?

No. The system is addressed to legal entities that have a regular import activity into this country.

What do I need to do to register for the Article 23 License in the Netherlands?

The procedure must be initiated during the tax registration formalities of the company, which are completed with the Dutch Tax Authority. To benefit from this system, you must add to your documentation an Article 23 application form. You can rely on our team of lawyers for assistance with this procedure.

What information must I provide during the application?

When you complete the application for the Article 23 Import VAT Deferment in the Netherlands, you will be asked to provide information on the following:

1. the company’s trade name;
2. its VAT number;
3. the country of origin of the company;
4. the types of goods the company wants to import into the Netherlands;
5. the estimated value of the goods;
6. the frequency of the imports;
7. in cases where the applicant is a foreign company, the name, address and VAT number of the fiscal representative appointed in the Netherlands are mandatory as well.

Do I need to pay any fees to the Dutch tax Authority?

Yes. Upon registration for the Article 23 License in the Netherlands, you are required to pay a security deposit (the payment is charged only one time), which has a minimum value of EUR 5,000 (its value can increase based on the value of the imported goods).

What is the duration of the registration process?

It takes at least 8 weeks to receive an Article 23 license number. The maximum duration of the procedure can be 12 weeks.

We invite you to contact our law firm in the Netherlands for more information on the subject (the documents you must prepare for the registration and other VAT-related issues).