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How does Fiscal Representation work?
The regulation in the European Union states that on the moment of the import declaration you will have to pay the import duties and VAT (21%) over the value of the goods on the customs declaration. You can reclaim this but this will take a registration in the Netherlands and the reclaim will be paid after a few months.
In the Netherlands there is a possibility to use a license called article 23 to transfer the VAT payment to the moment of the VAT declaration. This means that the import VAT doesn’t have to be paid on the moment of the import declaration but at the moment that Neele-Vat will fill out the VAT declaration. You can also deduct it at the same time so the amount will be €0,00.
This is typically only granted for an established company in the country of import but the Dutch Tax Authorities have decided to issue a license for Dutch companies called “fiscal representative”.
VAT Deferment
With this license Neele-Vat is able to act as a fiscal representative for other non-established companies, this means they can also defer the import duties for your company until the VAT declaration. We can represent you company and, as long as we have a signed agreement, you will have the same rights as Neele-Vat on the moment of import.
Example with article 23 VAT:
Your goods are custom cleared on the 8th of July with a value of € 10.000,00. The VAT declaration needs to be done by us on the 12thof October. On the VAT declaration we can reclaim this VAT at the same time so the payment of the import of goods is € 0,00. This means no direct payment of VAT.
Example without article 23 VAT:
Your goods are custom cleared on the 8th of July with a value of € 10.000,00, you will have to pay € 2.100,00 at this moment. You will have to register for a VAT number. The quarterly VAT declaration needs to be done the 12thof October. On the VAT declaration you can reclaim this VAT and you will receive it within approximately 6 weeks, around end November. This means you will have no access to your money for 5 months.
The use of article 23 can give you a great cash flow advantage and the opportunity to deliver quickly
Contact us
Get direct information from our customs experts. Reach out to us at fiscalrepresentation@neelevat.com.
Two options
We have two options regarding fiscal representation: General Fiscal Representation (GFR) and Limited Fiscal Representation ( LFR).
Selling your goods
There is a perfect solution for selling your goods to any European customer. Due to fiscal representation you can sell the goods without charging VAT.
Requirements
There are some requirements while using fiscal representation. See this link for information about incoterms, sales invoices and transfer of goods.
Special status
Shipments done as a sample shipment, a give-away shipment or goods delivered for free for a Sales representative can be shipped without paying Dutch VAT for a maximum.
Amazon delivery
Delivery to Amazon, Groupon or other companies and warehouses with no transfer of ownership on the moment of the transfer of the goods are no problem fur us at all.
E-commerce
For the Tax Law this transaction is called a “distance sale”. When a company imports goods and customs clears them in the Netherlands and sells these goods to a private person.