A fiscal representative in the Netherlands is usually required when a foreign company that does not have Dutch tax residency trades goods in this country. The obligation to appoint a fiscal representative appears in several situations, that are regulated by the Dutch legislation.
Our lawyers in the Netherlands present when such situations appear and can represent foreign clients in their tax obligations deriving from their local commercial activities.
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When is it required to appoint a fiscal representative in the Netherlands?
A fiscal representative in the Netherlands is necessary for the following types of corporate entities:
- a non-EU company incorporated outside the EU (without tax residency in the EU) imports goods or provides services in the Netherlands;
- a non-EU company, located outside the EU, is an e-commerce seller and sells goods to Dutch customers;
- companies in certain industries (logistics, manufacturing) that must complete custom duties obligations.
The 3 types of entities can rely on the legal assistance of our Dutch lawyers, who can offer fiscal representation services in accordance with the specific needs of each company/industry, as per the Dutch tax laws.
What types of services do fiscal representatives offer?
A fiscal representative in the Netherlands can provide a variety of services related to the tax obligations of a foreign company and the import formalities it must meet. In the list below, we present some of the services available in this sense:
- maintaining the connection with the Dutch authorities on behalf of the foreign company;
- completing VAT registration formalities;
- applying for the Article 23 license, through which foreign companies can avoid paying VAT on the import of goods at the moment when the custom clearance procedures are completed;
- obtaining an EORI number (necessary for customs procedures);
- submitting VAT returns, etc.
Useful information on VAT in the Netherlands
Given that a large part of the work of a fiscal representative in the Netherlands is made in connection to VAT registration and reporting, in the list below, our Dutch law firm highlights a few of the important aspects foreign companies should know about this type of tax:
- the VAT is charged at 3 different rates – 21% (standard), 9% and 0% (reduced);
- exemptions from the payment of VAT apply to resident small businesses, whose annual turnover is below EUR 20,000;
- VAT registration is mandatory for local businesses that have a turnover above EUR 20,000 in a financial year, while for foreign non-resident companies there aren’t any threshold requirements as these companies must automatically comply with VAT obligations when making taxable transactions in the Netherlands;
- foreign companies have the right to benefit from the provisions of the Article 23 license, through which the import VAT is deferred to period VAT returns, but it must be noted this right is available only for foreign companies that have appointed a fiscal representative in the Netherlands;
- according to the Dutch Tax Administration, for the 1st filing of the VAT return, the institution may send a paper VAT return and if this applies, the company is obliged to enclose original invoices and import documents.
The tax due will be calculated by our attorneys in the Netherlands and they will be using a Dutch tax calculator that utilizes specific formulas which offer reliable data.
Please know that the legislation stipulates that a fiscal representative must always be a legal entity, such as our law firm in the Netherlands (natural persons can’t offer this service). We invite you to contact us for further information on our fiscal representation services (we offer general and limited fiscal representation, in accordance with the needs of your business).