Your AEO-certified business partner for Fiscal Representation in The Netherlands
General Fiscal Representation
A General Fiscal Representative (GFR) represents a non-resident company with respect of all its supplies of goods and services for which VAT is due in the Netherlands. In addition, the company is represented by the GFR with respect of the intra-Community acquisitions of goods and the import of goods. When Berbo Customs Services acts as a GFR our client does not need to make a thoroughgoing study of the Dutch legislation and the complex VAT rules. Berbo Customs Services will apply for a personal license and VAT number for our customer. By default, Article 23 is applicable on the personal VAT number of our client, enjoying the import VAT deferment system that results in huge cashflow and interest benefits. The represented party uses its own Dutch VAT-number. Therefor we will apply for a Dutch VAT-number on behalf of the represented foreign client.
We take care of the whole procedure for a competitive fixed fee (one off setup costs). The timeline for a General Fiscal Representation license in The Netherlands will take up between 1 and 3 months to organise with the Dutch Tax Administration. Besides the setup costs, we will charge you a monthly fee for our fiscal services ass wel a small service fee per processed purchase- and/or salesinvoice.
The minimum contract duration is a period of 3 years. A bankguarantee based on the official formula of the Dutch Tax Administration as published in the Staatscourant is required.
Which advantages can be obtained with General Fiscal Representation in the Netherlands?
- You may deduct the VAT on all other cost which you have been charged in The Netherlands.
- You are able to avoid the payment of VAT on import while importing goods into The Netherlands.
- In comparison with a Dutch entity (BV) you face the same possibilities to avoid the payment of VAT on import without having an establishment and an accountancy firm in The Netherlands.
How does Fiscal Representation work?
The regulation in the European Union states that on the moment of the import declaration you will have to pay the import duties and VAT (21%) over the value of the goods on the customs declaration. You can reclaim this but this will take a registration in the Netherlands and the reclaim will be paid after a few months.
In the Netherlands there is a possibility to use a license called article 23 to transfer the VAT payment to the moment of the VAT declaration. This means that the import VAT doesn’t have to be paid on the moment of the import declaration but at the moment that Berbo Customs Services will fill out the VAT declaration. You can also deduct it at the same time so the amount will be €0,00.
This is typically only granted for an established company in the country of import but the Dutch Tax Authorities have decided to issue a license for Dutch companies called “fiscal representative”.
With this license Berbo Customs Services is able to act as a fiscal representative for other non-established companies, this means they can also defer the import duties for your company until the VAT declaration. We can represent you company and, as long as we have a signed agreement, you will have the same rights as Berbo Customs Services on the moment of import.
Example with article 23 VAT:
Your goods are custom cleared on the 8th of July with a value of € 10.000,00. The VAT declaration needs to be done by us on the 12th of October. On the VAT declaration we can reclaim this VAT at the same time so the payment of the import of goods is € 0,00. This means no direct payment of VAT.
Example without article 23 VAT:
Your goods are custom cleared on the 8th of July with a value of € 10.000,00, you will have to pay € 2.100,00 at this moment. You will have to register for a VAT number. The quarterly VAT declaration needs to be done the 12th of October. On the VAT declaration you can reclaim this VAT and you will receive it within approximately 6 weeks, around end November. This means you will have no access to your money for 5 months. The use of article 23 can give you a great cash flow advantage and the opportunity to deliver quickly.
The time necessary to obtain a General Fiscal Representation license will take 1 up to 3 months to organize. It's very important to provide us as soon as possible with all required information. Only in that way we can speed up with the Dutch Tax Administration to setup the required structure and tax license. In the meantime the bank guarantee or bank transfer should be organized. Without these financial guarantee the Dutch Governmental Bodies will not provide us with the requested tax license. Once all requirements are accomplished, we are able to start with the General Fiscal Representation license.
Curious about our Fiscal Representation services?
We are glad to make an attractive and personal quotation for you.
Please contact our Sales team:
As soon as possible, but in any case within 1 workingday, one of our specialists will contact you.
Download highlights / printable version
Click here or at the Adobe PDF sign, to download a shortlist of the Customs related activities the BGS team performs in The Netherlands.