The Netherlands is one of the few EU countries with a special reverse mechanism on import. European VAT entrepreneurs who apply for the special Dutch reverse charge mechanism on import, will not have to pay VAT immediately when importing the goods in the Netherlands. Instead they will file VAT returns as follows. The VAT payable on the imported goods will deducted at the same time with the same VAT amount. This way the European VAT entrepreneur will not have to pre-finance the VAT on imported goods. The reverse charge mechanism on import ensures importing is VAT neutral. Importing within the Netherlands can therefore be an appealing option!
Non-EU entrepreneurs can’t independently obtain a permit for using the reverse charge mechanism on import if they don’t have a Dutch branch. If you reside outside the EU, you will have to appoint a fiscal representative or set up a company in the Netherlands. The fiscal representative who applies for the permit can use the reverse charge mechanism on import for the non-EU entrepreneur. There are different kinds of fiscal representation, with each its own conditions.
Would you like to know if you are eligible for the Dutch reverse charge mechanism on import? Please contact us by filling out the contact form. One of our English speaking consultants will contact you at short notice.
Date: April 5th 2012