Is fiscal representative compulsory in the Netherlands ?
the Netherlands is a European Union Member State. If your business is established in another European Country appointing a tax agent or VAT representative is not compulsory.
the Netherlands no REQUIRES a tax representative for non EU businesses.
When and how do you have to register for VAT as taxpayer?
Registration in the Netherlands is made in two ways. The first layer is a simple identification for tax purposes : you get your TIN (Tax Indentification Number). It may be for customs needs (your business buys/sells within exempted areas or bonded warehouses, or IntraCommunity purchases. It is just as simple and limited to a Tax number.
A second layer is requested for businesses triggering « right to deduct » and this means the business is performing operations for which it has rights and duties :
– the business has to submit periodical returns to report local operations
– the business has no more access to VAT refund through transnational web portal or 13th Directive, but reports VAT on purchases directly on the form(s) (Online form) provided by in the Netherlands like other established companies.
This « trigger » is activated when :
– you deliver goods to individual particulars in the Netherlands and do not / cannot opt for the Distance Sales Threshold relief.
– you move goods from the Netherlands to another State, being third country or Member state.
In most cases your VAT number in the Netherlands will be similar to NL1 2 3 4 5 6 7 8 9 B 01.
What is the threshold for deliveries to particulars individuals in the Netherlands ?
Distance selling as per art. 34 of VAT Directive (and taxable persons not entitled to deduct input tax and by non-taxable legal persons as per art. 3(2)(a) of the VAT Directive) : EUR 100,000
EUR 10,000 (acq. exempted pers.)
Once registered for VAT with right to deduct, which VAT should your business apply in the Netherlands ?
Standard VAT rate in the Netherlands is 21%, while intermediate rate is -. On the other hand, reduced rate is 9% as of 1 January 2019 (6% in 2018 and earlier).
Application of Article 37 and 109 to 122 of the VAT Directive in the Netherlands : Zero-rated and exempt
Please note that we open access to a detailed table of VAT rates per goods and services in the Netherlands :
See our section https://becompliant.tax/vat-rates-netherlands
What is the scope of a fiscal representative in the Netherlands?
Fiscal representative should always diagnose your operations in the Netherlands and establish clearly and by written :
1- What your transactions are
2- Where your transactions must be reported : territoriality
3- what are your liabilities in the reporting territory : VAT? ECSL? Intrastat?
4- what are the conditions in which you must charge or exempt VAT in your invoices
5- provide you with a reporting agenda
What form for VAT returns and when to submit in the Netherlands ?
Your fiscal representative in the Netherlands will have to submit periodically on your behalf.
The VAT form you are expected to submit in the Netherlands : Online form
In the Netherlands, the periodicity of VAT (locally called Belasting over de toegevoegde waarde (btw) Wet op de omzetbelasting 1968) is as follows :
Monthly VAT returns in the Netherlands are due Last day of following month, always that If requested by the taxable person or the tax authorities
Your VAT payment is due : Same as return.
Quarterly VAT returns in the Netherlands are due Last day of following month, always that Default
Your VAT payment is due : Same as return.
Yearly VAT returns in the Netherlands are due Last day of following month, always that If VAT payable per year does not exceed EUR1,883 and some other requirements are met will be abolished per 1 January 2020
What are the E/ICSL a fiscal representative submits in the Netherlands ?
The ECSL you are expected to submit in the Netherlands : non resident ICP, within 2 following months
Your statistical declarations (Intrastat) in the Netherlands : 10th working day of following month
What are the late registration penalties in the Netherlands ?
Penalties are assessed for the late submission of a VAT return or for the late payment of VAT, in the following amounts:
For the late submission of a VAT return, the maximum fine is EUR131.
For errors in the payment of VAT, the maximum fine is 10% of the VAT due, up to a maximum amount of EUR5,278.
For the late payment of VAT, the minimum fine is EUR50, and the maximum fine is 10% of the VAT due, up to a maximum amount of EUR5,278.
If the late payment is caused by negligence, intent or fraud, fines ranging from 25% to 100% of the VAT payable may be imposed.
If a taxable person knows errors were made in the payment of VAT and did not notify the tax authorities accordingly, a penalty may be imposed up to 100% of the VAT that was not reported and paid as a result of the error, i.e., 25% is the typical penalty for gross negligence, 50% for intent and 100% for fraud.
In addition, taxpayers must file supplementary returns if it appears that the information provided was inaccurate and/or incomplete. Noncompliance with the duty to file supplementary returns is subject to an offense penalty of up to 100% of the amount of the unpaid tax. This penalty may be imposed if the taxpayer knew or should have known that the tax levied fell below the amount that was actually due.
Where to find official information about VAT in the Netherlands
the Netherlands transposed the European Directive into national regulation Law on Turnover Tax, 1968 (Stb. 329), as last amended by the Laws of December 2019.
The Revenue administration responsible for VAT in the Netherlands is :
Ministry of Finance
You can gather more information by contacting the directly :
VAT and INTRASTAT compliance in the Netherlands
Request a free estimate
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