Netherlands - Import VAT Deferment Option (Article 23)

If you are registered for VAT in the Netherlands and you import goods from outside the European Union (EU), you can defer payment of import VAT. This is called the Import VAT Deferment Option (Article 23). The Dutch authority allows importer to defer VAT which makes Netherlands such an attractive importing destination.

Who Can Use Import VAT Deferment Under Article 23?

To be eligible for the deferment, you must:

- Be registered for VAT in the Netherlands;

- Import goods from a place outside the EU;

- Import goods from outside the EU on a regular basis; and

- Keep records in which your imports and the import VAT can be checked.

If you meet these conditions, you can choose to defer payment of import VAT. This means that you do not have to pay import VAT at customs when the goods are imported into the Netherlands. You can choose to defer payment of import VAT for each import declaration.

If you use the licence, you declare the import VAT in your VAT return and can deduct it as input VAT in the same return, so there is usually no net payment. This is usually done every quarter. You report the import VAT in box 4a (supplies/services from countries outside the EU) of your Dutch VAT return. Please note that you are still required to comply with all other requirements for importing goods into the EU, such as paying any customs duties that may be due.

The Import VAT Deferment Option is a simplified procedure that allows you to postpone payment of import VAT. It is available to businesses of all sizes, but the licence is intended for businesses that import goods regularly. With the Article 23 licence, you can defer your import VAT. However, foreign companies cannot apply for the licence themselves: they must appoint a fiscal representative with a general licence to apply for it and manage the VAT on their behalf, or import through a limited fiscal representative that uses its own Article 23 licence.

If you would like to take advantage of the Import VAT Deferment Option, please contact Global Trade Business to help you to optimise the customs process and improve your cash flows.

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