BTW-INSTITUUT
Een bewuste en geruste keuze
Een bewuste en geruste keuze
Fiscal representation
As a foreign organization, you might in some circumstances need to appoint a fiscal representative in the Netherlands. VAT INSTITUTE would be happy to take on this role.
Distance selling
The most common situation in which fiscal representation is needed is for distance selling, where you, as a foreign organization, sell to someone in the Netherlands where no VAT is payable. In that case, you’ll need to charge VAT at 0% in the Netherlands, and settle the VAT in your own country.
What a fiscal representative can do
- A fiscal representative completes your VAT returns. These are the returns for the country in which the representative operates. If you do business in several countries, you might need to appoint a separate fiscal representative in each country, depending on their rules.
Limited and general fiscal representation
- There are two strands to fiscal representation – limited and general fiscal representation. In the latter case, your representative is not liable for the security of any tax claims, while in the former, your fiscal representative is fully responsible. VAT INSTITUTE only accepts commissions for limited fiscal representation.
Benefits of fiscal representation
As a foreign organization, you can enjoy multiple benefits from appointing a fiscal representative, the two most important of which are:
0% VAT rate
If you have a fiscal representative and temporarily store goods in the Netherlands before exporting them to non-EU countries, you can take advantage of a 0% VAT rate. This means that you are not required to pay VAT in the Netherlands.
Reverse charge
If you have a fiscal representative, you are eligible to apply for an Article 23 permit. Having this means that you do not need to pay VAT at the time of import, but only when completing the VAT return.
What if you forget to appoint a fiscal representative?
If you are required to appoint a fiscal representative but neglect to do so, you will lose the option to take advantage of the above benefits, and may run into problems during transport of your goods. Without proper representation, the customs authorities may hold your goods at the port. Your goods will then only be released once you have appointed a fiscal representative.
Need a fiscal representative in the Netherlands? Please get in touch. VAT INSTITUTE would be happy to take on this role. Are you a Dutch business looking for a fiscal representative abroad? Please give us a call. We’d be happy to put you in touch with a skilled representative through our network.
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