All about fiscal representation

Posted by Marcel van Leeuwen on March 27, 2023 · 3 mins read

When, as a foreign entrepreneur, you channel your imports through the Netherlands, you automatically also deal with Dutch VAT obligations. That can have quite an impact on your cash flow have. A fiscal representative can then offer a solution. How does that work?

What is a fiscal representative?

A fiscal representative fulfils VAT obligations on behalf of an entrepreneur in Netherlands. If an entrepreneur does not live in the Netherlands and does not have a VAT number, he/she can that person can engage a fiscal representative to take all the administrative burden off their hands. take away. In some cases, appointing a representative is even mandatory.

Who can act as tax representative?

In most cases, a customs agent or a logistics company acts as a fiscal representative. But sometimes an accountant can also fulfil this role. Do you want to be sure of smooth declaration and make use of all tax benefits? Then it is advisable to use the expertise of a customs broker.

What is limited fiscal representation?

When goods are imported into the Netherlands that are destined for a company in another EU member state, limited fiscal representation can be applied. In this case, the VAT on importation is transferred to the limited fiscal representative, who thus takes over the customs clearance procedure. with it. This allows the goods to be smoothly transported to the country of destination.

What are distance sales?

Distance sales involve supplying goods to customers within the EU who do not file VAT returns, such as private individuals. such as private individuals. In many cases, Dutch VAT may then be charged. If more is purchased than the threshold amount, the customer does have to file a VAT return.

Why choose fiscal representation?

With fiscal representation, you do not need to have a branch or subsidiary in the importing country. Nor do you need to have a Dutch registration. This allows foreign companies to still import goods via the Netherlands or another EU member state without having to maintain their VAT administration there. The fiscal representative takes care of all formalities and obligations in the country of importation.

What is direct representation?

This is the most common method of representation in the Netherlands. The customs agent takes over the customs declaration from the principal, but does so in the name and for the account of the principal. The principal thus remains liable for the declaration.

Need help?

Do you have questions about fiscal representation? Or are you curious about the possibilities? Then Rotterdam Customs Services B.V. is ready to help you. Our experts have all the necessary knowledge and are up to date with the latest changes in legislation.

Marcel van Leeuwen

Marcel van Leeuwen was there from day 1 – he experienced all the challenges that Brexit brought and took all the colleagues by the hand in the joint efforts that were made. Marcel also has a long number of Years of experience especially in the Fresh Produce sector as declarant. First at Amsterdam Airport, later with a Transport Organisation and the last 4 Years with LBP Rotterdam BV as senior declarant. At RCS Marcel is the Operations Manager managing the day-to-day business.

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