VAT Registrations in the Netherlands

VAT Number in The Netherlands

As a general rule, a foreign business must register for VAT in The Netherlands as soon as a taxable supply is made. Registrations thresholds do not apply to non-established companies. The following are some usual examples of taxable transactions:

• Domestic supply of goods not reverse charged: A supply of goods located in the Netherlands where reverse charge does not apply requires a VAT registration of the supplier.
• Supply of services not reverse charged: Foreign non-established businesses supplying services on which Dutch VAT is due by the supplier must register for VAT. These services are rather exceptional, as the general B2B rule would apply.
• Export: Exporting goods to a non-EU country requires a VAT number before the export is made.
• Intra-Community acquisition: Acquiring goods from another Member State where all conditions for intra-Community movements are met requires the customer to register for VAT.
• Intra-Community supply: Supplying goods another Member State is also a taxable transaction that obliges the supplier to register for VAT.
• Distance sales: When applicable, in case the Seller has not joined OSS. See the E-commerce manual for more information.

Companies can also register voluntarily in The Netherlands. For example, if they are incurring Dutch VAT but not making any taxable transaction, it is possible to register for VAT and claim the VAT incurred via the VAT return instead of the 8^th or 13^th Directive.

The VAT registration threshold for established Dutch businesses is €20,000 of global turnover. Dutch companies below the threshold can benefit from a special scheme that simplifies their VAT compliance obligations. You may find more official information about this small business scheme . As mentioned above, this limit does not apply to non-established companies.

VAT Registration Process

For a VAT number, the Dutch tax office often indicates around 20 working days once the physical registration documents have been received. In practice, processing may range from about 2 weeks to 5 to 6 weeks if no additional information is requested.

For Dutch VAT registration applications, the VAT certificate, trade register excerpt and articles of association are typically requested with translations into English or Dutch in addition to the original documents. In most cases, simple translations are sufficient unless the tax authorities specifically ask for sworn or legalized translations; additional documents or language requirements may also be requested depending on the case.

If a Dutch VAT number has been cancelled unintentionally but the business has not ceased its activities, a reactivation request is normally made by submitting a new VAT registration form completed in sections 1, 2, 3, 4, 5, 6 and 11, together with a power of attorney authorising the current VAT compliance provider to act on the company’s behalf. The cancellation notice received from the Dutch tax office should also be attached if available, and the documents may be sent by email where this has been agreed with the tax office.

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VAT Number Format in The Netherlands

• Country code: NL
• Structure: NL999999999B99
• Format (excludes 2 letter alpha prefix): 1 block of 12 characters
• Comments: The 11th position is always by the prefix "B".

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VAT Fiscal Representative in The Netherlands

In general, EU and non-EU businesses do not need a fiscal representative when registering for VAT purposes in the Netherlands. Unlike other EU countries, EU and non-EU companies can register directly for VAT in the Netherlands. Registering directly means that the legal representative of the company can sign the registration form without any local Dutch involvement. Appointing a fiscal representative is however mandatory when applying for import simplifications such as Import VAT deferral, using VAT or customs warehouses or making certain zero-rated supplies.

In practice, a non-EU business does not usually need a fiscal representative for a standard Dutch VAT registration. A local fiscal representative may however be required when applying for Article 23 postponed import VAT accounting or certain special licences such as a VAT warehouse licence, so the exact requirement should be confirmed with the Dutch tax authorities or your tax advisor.

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VAT groups in The Netherlands

VAT grouping is possible in the Netherlands. Normally, creating a VAT group is a voluntary choice made by the taxpayer (no mandatory VAT grouping). Only where the tax authorities have carried an audit and after reviewing the links between different members of the same group, they may determine that a VAT group is required. Regarding the eligibility criteria, the following conditions and information should be taken into account:

• Two or more taxable persons established in The Netherlands and having financial, economic and organizational links can create a VAT group.
• Financial links exist when more than 50% of the shares are owned directly or indirectly by another member. Organizational links require common management for all entities. Regarding the economic link test, it requires all group members to carry a similar activity or within the same industry.
• Holding companies are excluded unless they are involved in the management of the group.
• Non-established companies are also excluded. Branches and permanent establishments are accepted.

The application for a VAT group is submitted to the Dutch tax authorities, who will assess the request and make a decision. However, recent Court decisions have allowed for the VAT group simplifications to apply as soon as all conditions are met (no application would be required).

Some of the characteristics of Dutch VAT groups are the following:

• Upon registration, the VAT group will receive a VAT identification number which is separate from the VAT numbers of each member.
• All supplies within the VAT group are disregarded for VAT purposes.
• Normally, one single VAT return will be filed for the entire group, although exceptions can be requested.
• Finally, members of the VAT group are jointly and severally liable for VAT debts of the group.

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Dutch consignment and call-off stock

The EU introduced a call-off stock simplification that all EU Member States must implement. This was put into place so that businesses that operate under a consignment stock structure do not have to VAT register in the country of destination. The Netherlands has introduced the consignment stock simplification.

Check out our article on the EU call-off stock simplified VAT rules for more detailed information.

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Import VAT deferral and postponed import VAT in The Netherlands

The Netherlands has introduced a postponed import VAT accounting mechanism where import VAT can be reported as input and output VAT (reverse charged) in the VAT return instead of being paid to the authorities upon importation. Import VAT deferral, meaning delaying the payment of VAT for a given period, is not applicable in the Netherlands. You should however be aware of the difference as postponed import VAT accounting is sometimes referred as deferral import VAT.

For postponed import VAT accounting to apply, a business must be established in the Netherlands or registered through a limited or general fiscal representative. Imports must be done on a regular basis and the applicant must keep records of all imported goods.

In case you appoint afiscal representative for the so-called license 23, the foreign company mustset up a financial guarantee. There are two options:

• cash deposit, and that can be done from a foreign bank account, or ‍
• bank guarantee and this must be done from a bank established in the Netherlands.

For more information on limited fiscal representation see section Global VAT numbers and limited fiscal represantive.

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.

For more information about Customs in The Netherlands see the official website information.

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Global VAT numbers – Dutch limited fiscal representation

Global VAT numbers are known as Limited Fiscal Representation in the Netherlands. A limited fiscal representative can be used for imports followed by domestic supplies. In these cases, a VAT registration is not required, all transactions are accounted and reported by the limited fiscal representative under his own VAT number.

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