Fiscal representation in the Netherlands

Two kinds of licence

Dutch law distinguishes a fiscal representative holding a general licence from one holding a limited licence. That distinction governs what he may do on your behalf.

The general fiscal representative acts for all supplies of goods and services on which you owe VAT, and additionally for your intra-Community acquisitions and your imports. You can appoint only one, and you remain registered in the Netherlands yourself alongside him.

The limited licence covers a defined slice, typically importation followed by an onward supply. Logistics providers commonly hold this form on behalf of their customers.

When it is compulsory

If you are established outside the EU and sell at a distance to consumers in the Netherlands, you must appoint a general fiscal representative in two cases:

• Your head office or establishment lies in a country with which no mutual assistance treaty has been concluded
• You do not use the Union scheme to report your distance sales

In all other situations it is a choice, and for EU-established businesses it almost always is.

Deferring import VAT, and why that is the real point

On importation, VAT is in principle due to customs at the moment of import. You pay first and reclaim later through your return, which ties up working capital on every consignment.

With a deferment licence that VAT moves to your periodic return, where you deduct it in the same return. On balance you pay nothing and nothing is tied up.

For a foreign business the route to such a licence runs through the fiscal representative. For many importers that, rather than the paperwork, is the actual reason to appoint one: cash flow.

What goes wrong

The errors we see are rarely technically difficult, but they are expensive:

• Importing in your own name without a deferment licence, pre-financing VAT unnecessarily for years
• A limited licence used for flows it does not cover
• A return filed by the representative that does not reconcile with the business's own registration
• An EC Sales List left behind, putting the zero rate on the onward supply in question

What we do

We assess whether representation is compulsory in your case or merely advantageous, which form of licence fits, and whether the deferment licence is achievable. We then handle the application and the filing work.

A Dutch VAT registration costs EUR 175 once. Other work is agreed in advance.