Customs warehouse and VAT warehouse in The Netherlands
The Netherlands has introduced both VAT regimes, VAT warehouses and Customs warehouses.
VAT warehouses apply specifically for goods that have cleared customs (T2 products). VAT is not due when these goods are traded under the VAT warehouse simplification. Only certain goods can benefit from the VAT warehouse regime, the tax authorities published a list every year with these goods, which normally include unfinished goods. These are products that need to be processed before being sold to the end consumer such as mineral products, agricultural commodities and certain chemical products.
There are two kinds of VAT warehouses:
- Non-physical VAT warehouse (administrative VAT warehouse): This regime allows goods to be traded under the same conditions as within a VAT warehouse in any place within the Netherlands. Goods do not need to be located within the physical boundaries of a VAT warehouse, however, both supplier and client need to hold a VAT warehouse license.
- Physical VAT warehouse: As in other countries, VAT is not charged on goods bought and sold within a VAT warehouse. In this case, the supplier and the customer do not need to hold a VAT warehouse license, however, the goods must physically stay within the space limits of the VAT warehouse, which will be managed by a license owner. When the goods leave the VAT warehouse, the customer outside the warehouse accounts for VAT under the reverse charge mechanism.
Customs warehouses apply specifically for goods that have not cleared customs (T1 products). When goods from a third (non-EU) country are placed in a customs warehouse, no customs duties, tariffs or VAT is due. These taxes become due when the goods leave the Customs warehouse regime and the taxable person releasing the goods is the importer who is liable for VAT. In case the goods leave a customs warehouse but are immediately placed in another Customs warehouse, no import is made.