On goods entering the EU, import duties, VAT and other taxes must be paid. For foreign importers who import goods into the EU via the Netherlands, it can be very useful to empower BSF Expeditie B.V. with fiscal representation. By doing so, only import duties and other applicable remittances need to be paid as VAT payments are postponed. Subsequently, the goods can be transported to their destination without limitations.
Advantages of tax representation
Tax representation offers the following advantages to foreign importers:
- Liquidity increase.
- No need to conduct your own VAT registration.
- Unburdening with regard to import declaration, VAT and statistics, allowing you to focus on your core business.
- The recipient receives the goods as an intra-Community supply. As a result, no immediate action is required.
The reverse charge system
As a general rule, foreign companies importing goods from outside the EU to the Netherlands should immediately pay VAT to customs by means of an import declaration. By authorising BSF Expeditie B.V. to act as your fiscal representative, importers can benefit from the reverse charge mechanism on import. The fact that we dispose of our own VAT registration allows you as an importer to postpone VAT payment. Instead, you simply include it in your periodical turnover tax statements.
In using the reverse charge systems, both the remitting party and the time of remittance are altered. As your tax representative, we declare the tax you owe on your import to the VAT return for the relevant period. In the same statement we deduct the VAT paid for you as input tax. You no longer need to pre-finance the VAT payments offering you a substantial increase in cash flow.
What can we offer you with regard to tax representation?
- VAT declaration
- Payment of VAT owed
- Administrative obligations such as contracts and collecting all required documents
- Declaration of intra-Community deliveries (*)
- Reporting to the Central Bureau of Statistics (CBS)
(*) In case you carry out deliveries from the Netherlands to other EU countries to which the 0% rate applies, you must submit a declaration of intra-Community supplies on a quarterly basis.
For questions relating to tax representation or customs formalities, please contact Roel van Tuyl.