VATLive > Blog > United Kingdom > Netherlands warns on Brexit import VAT and fiscal representative by 15 Oct 2020

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

  • Sep 28, 2020 | Richard Asquith

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.

Avalara can help

Avalara offers a global Fiscal Representative service as part of its international VAT and GST registration and returns service. This helps thousands of businesses of all sizes accurately and easily manage their tax compliance obligations on a fully automated service.

Avalara can guide you when you need a Fiscal Representative, and ensure the whole process is fully co-ordinated in any country with single point-of-contact Account Manager. Contact us for details.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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