Fiscal Representation

When a foreign entrepreneur imports goods or carries out other economic activities in the Netherlands, he must comply with the administrative obligations for Dutch VAT. This Value Added Tax (VAT), 21 percent for most goods, must be paid when you import goods into the Netherlands.

VAT can be reclaimed from the Dutch tax authorities, but for this your company must be registered in the Netherlands.

Such registration entails a lot of red tape and in most cases is not necessary at all. There is a solution for foreign companies: fiscal representation.

Fiscal representation means that a company registered in the Netherlands acts as the representative of the importing foreign company when it comes to the declaration and administration of VAT. A special permit is required to represent foreign companies. Cargodocs has the necessary permit.

What are the advantages?

• You do not need to register your company in the Netherlands (yourself).
• You do not have to set up and maintain VAT administration.
• You do not have to pay VAT immediately upon import, this is transferred to the VAT return of the representative. That makes a difference in your cash flow.
• There are two types of fiscal representation: limited and general representation.

A number of requirements are the same for both types of representation:

• The tax representative must be established in the Netherlands.
• The representative must apply for a license to represent the foreign company (the client).
• From that moment on, the representative arranges, among other things, the VAT return, administration and the declaration of intra-Community supplies to other EU member states (ICP declaration) and the statistical declaration to the CBS.

Limited Fiscal Representation
With limited fiscal representation, we can act on behalf of the customer for imports from non-EU countries and subsequent deliveries. We can also act for our customers who want to remove goods from a VAT warehouse.

General Fiscal Representation
General fiscal representation concerns deliveries and purchases within the EU or the (temporary) storage of goods in a warehouse in the Netherlands in anticipation of a sale within or outside the Netherlands.

If you would like to know more about tax representation and which form suits your company best, please contact one of our specialists. We are happy to help you!