• Service: Tax, Global Indirect Tax
  • Type: Regulatory update
  • Date: 1/9/2014

Netherlands - Cost-savings opportunity concerning VAT representatives of foreign companies 

January 9: Entrepreneurs not established in the Netherlands but subject to value added tax (VAT) can appoint a fiscal representative to fulfill their VAT obligations.

A fiscal representative, for example, is required if a foreign company would like to make use of the import VAT deferment scheme (i.e., an Article 23 license) or to apply specific VAT zero (0%) rates, such as those available for supplies of goods under an excise- or VAT-warehouse regime.

One of the requirements to be satisfied in appointing a fiscal representative in the Netherlands is that a bank guarantee must be provided to the Dutch tax authorities. The amount of this bank guarantee is determined based on the monthly turnover of the foreign company in the Netherlands.

Recently, the Dutch Ministry of Finance published new guidelines for determining the amount of the bank guarantee. Based on this new policy, the amount of bank guarantee to be provided generally is a lower amount—and thus, this reduction in the amount of the guarantee may offer possible savings opportunities for foreign companies.

For more information, contact a tax professional with the KPMG member firm in the Netherlands:

Mathijs Horsthuis

+31 (0)40 250 2478

Joost Willemsen

+31 (0)40 250 2423

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