Netherlands warns on Brexit import VAT and fiscal representative by 15 Oct 2020

The Dutch tax authorities are warning UK businesses that they will have to reorganise their VAT and customs arrangements to avoid incurring heavy import VAT bills.

Belastingdienst is advising that UK importers into the Netherlands must act to apply for VAT deferment (Article 23 license) by 15 October.

As the UK leaves the EU VAT regime and Customs Union on 31 January 2020, any movements of goods from the UK to Netherlands become subject to Dutch import VAT at 21% and tariffs, subject to Free Trade Negotiations. 

To avoid the import VAT liability, the UK business may apply for import VAT deferment under a Netherlands Article 23 license. The means no VAT is paid at Dutch customs. Instead, they may declare the import through a Dutch VAT return as a bookkeeping entry only.

To apply for an Article 23 license, UK businesses will be required to appoint a Dutch resident fiscal representative. The special type of VAT agent is jointly and severally liable for an underdeclared or missing VAT. Up to 19 of the EU27 member states will require Brexit VAT fiscal representatives from 1 January 2021.

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