We have two options regarding fiscal representation:
General Fiscal Representation (GFR)
- We will apply for your own Dutch VAT number with article 23, the licenses will be registered on your company name with our name combined
- We will custom clear your goods under your own Dutch VAT number
- You are able to sell both B2B and B2C
- You are able to buy in the EU/ Netherlands with your VAT number
- You are able to sell EXW/ FCA
Limited Fiscal Representation (LFR)
- We will use the Dutch VAT number of Neele- Vat with our Dutch VAT number
- We will custom clear your goods under the Dutch VAT number of Neele- Vat
- LFR can only be used for import and following B2B sales
- You are not able to sell B2C
- You are not able to buy goods in the EU/ Netherlands
- You are not allowed to sell EXW/ FCA
To avoid paying VAT on moment of import or during a sales transaction you will have to sell the goods B2B with a valid VAT number of the end customer in the country where you deliver the goods.
LFR means that the import of your goods and the following delivery to your customer is represented with the VAT number and article 23 of Neele-Vat and the VAT can be deferred as long as your end customer is a company with a valid VAT number.
The risks are not limited and with shipments which have not been reported the correct way the VAT can be charged up until 5 years after the sale by the Dutch Tax Authorities. The risks can easily be limited by arranging the transport via Neele-Vat ( obliged with LFR, no Ex-works or FCA allowed) so we receive the Proof of Delivery. Together with your sales invoice stating all invoice requirements, we have solid evidence.
GFR means we will register your company at the Dutch Tax Authorities and you will receive your own Dutch VAT number. Neele-Vat will be your representative in the Netherlands and will make the custom clearance under your own Dutch VAT number with article 23 (this means no payment of VAT on the moment of import) and will make sure that all fiscal and legal requirements are met.
Neele-Vat will fill out your monthly VAT declaration, intra-community declaration and Intrastat on behalf of your company, this is done by the use of your sales and purchase invoices. The import information we can generate from our systems as long as we handle your import shipments. This means less effort is expected from your company regarding the information of the import shipments and their exact amounts. GFR can be done for a customer outside the EU and for a customer in the EU so we can represent you.
With GFR there is a limited risk due to the fact the risk can only amount up to the maximum of the guarantee which has to be set. This guarantee will be calculated in the set up process and will be requested by the Dutch Tax Authorities if you would apply for an article 23 with your Dutch VAT number ( no VAT on the moment of import). The Dutch Tax Authorities have the right to reclaim for 5 years but to the maximum of 5 times the guarantee. With the Proof of delivery and sales invoices this risk will be minimal.
Has your company, which is not settled in the EU, paid VAT on your import shipments because you had no fiscal solution at the moment of import? Did you purchase goods for your company and were you charged VAT? Did you know reclaiming the paid Dutch VAT is possible for up to five years after the year in which it was charged?
Find out how our Fiscal Department can assist you in the process of your company’s VAT recovery and learn how this can be prevented in the future on the page VAT Reclaim