+3120 244 0480

VAT regime

Dutch VAT Regime – Structural Facilities and International Trade

The Netherlands offers a number of structural VAT facilities relevant for internationally active businesses.

These facilities can improve cash flow, reduce administrative complexity and limit foreign VAT registrations, provided that statutory conditions are met.

Each regime requires careful alignment with EU VAT law, customs rules and anti-abuse standards.

VAT Grouping

Entities established in the Netherlands that are closely linked may form a VAT group.

A VAT group exists where entities are:

  • Financially integrated
  • Organisationally integrated
  • Economically integrated

All members must be established in the Netherlands or have a fixed establishment there.

A VAT group is treated as a single taxable person for Dutch VAT purposes.

Transactions between group members within the Netherlands are disregarded for VAT.

This can reduce internal VAT leakage and improve cash flow.

However, VAT grouping creates joint and several liability for VAT debts of the group.

The structure must reflect genuine integration and cannot be created solely for VAT optimisation.

Cross-border entities without a Dutch establishment generally cannot be included.

Warehouse Regimes

The Netherlands provides customs and excise warehousing regimes that interact favourably with VAT.

These regimes are particularly relevant for logistics and distribution structures using the Netherlands as an EU entry point.

Bonded Warehouse

Under the customs bonded warehouse regime, import duties and import VAT are suspended while goods remain under customs supervision.

Payment becomes due only when the goods are released for free circulation.

This postponement improves liquidity and supports international supply chains.

The regime is governed by EU customs legislation and requires authorisation.

Excise Warehouse

Excise goods such as alcohol, tobacco and mineral oils may be stored in an excise warehouse.

Excise duties are suspended until the goods are released for consumption.

Supplies of goods to and within an excise warehouse may qualify for the zero VAT rate, provided all formal conditions are satisfied.

Strict administrative controls apply.

Import VAT Deferment (Article 23 Licence)

The Netherlands offers an import VAT deferment mechanism, commonly referred to as the Article 23 licence.

Under this system, import VAT is not paid at the time of customs clearance.

Instead, the import VAT is reported in the periodic VAT return and simultaneously deducted, provided there is full right of deduction.

The result is a cash flow neutral position.

Key characteristics include:

  • No pre-financing of import VAT
  • Simplified logistics for EU distribution
  • Reduced need for VAT registrations in other Member States, depending on the supply chain

The licence is granted subject to compliance conditions and administrative reliability.

Misuse or non-compliance may lead to withdrawal.

Consignment and Call-Off Stock

EU VAT rules distinguish between consignment stock and call-off stock arrangements.

These structures are relevant where goods are transported between Member States to be held in stock before sale.

Consignment Stock

In a traditional consignment arrangement, the supplier retains ownership of the goods until a customer is identified.

This typically requires VAT registration in the Member State where the stock is held.

The transfer of goods may trigger an intra-Community acquisition in the Member State of arrival.

The supplier must account for local VAT compliance.

Call-Off Stock (EU Simplification)

Under the harmonised EU call-off stock simplification, the supplier may avoid VAT registration in the Member State of destination if strict conditions are met.

The customer must be identified at the time of transport and must account for an intra-Community acquisition when the goods are called off.

The supplier reports a zero-rated intra-Community supply in the Member State of departure.

Documentation and reporting requirements are strict.

Failure to comply may lead to retroactive VAT registration obligations.

Fiscal Representation

Non-EU companies performing VAT-taxable activities in the Netherlands are generally required to appoint a fiscal representative.

The fiscal representative may assume joint liability for VAT obligations, depending on the type of representation.

EU-established companies are not mandatorily required to appoint a fiscal representative but may do so for practical reasons.

Fiscal representation interacts with import VAT deferment and customs authorisations.

Compliance and Administration

Dutch VAT compliance is comparatively streamlined.

Periodic VAT returns are concise and filed monthly or quarterly, depending on turnover and VAT payable.

Supplementary statements, such as EC Sales Lists and Intrastat declarations, may apply for cross-border trade.

The Dutch tax authorities apply a risk-based supervision model.

While practical solutions may be discussed in advance, formal compliance remains essential.

Position Within an International VAT Structure

The Netherlands is frequently used as an EU distribution hub due to its port infrastructure, customs facilitation and VAT mechanisms.

However, VAT optimisation must be consistent with:

  • Actual logistics flows
  • Contractual arrangements
  • Transfer pricing policies
  • Customs valuation

Artificial routing of goods without economic rationale may be challenged under anti-abuse principles.

Advisory Scope

Nexpat advises on the structuring and implementation of Dutch VAT regimes within international supply chains.

This includes:

  • VAT group analysis
  • Import VAT deferment applications
  • Warehouse and customs coordination
  • Cross-border stock arrangements
  • Fiscal representation structures

Our approach integrates VAT, customs and corporate tax considerations within a coherent Netherlands tax structure suitable for international businesses.