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.
To be eligible for the deferment, you must:
- Be registered for VAT in the Netherlands;
- Import goods from a place outside the EU;
- Have the goods transported directly to the Netherlands from the place outside the EU; and
- Make sure that all transport documents show that the transport was direct.
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 when the goods are imported into the EU. You can choose to defer payment of import VAT for each import declaration.
If you defer payment of import VAT, you must pay the VAT when you declare the goods in your VAT return. This is usually done every quarter. You will find the amount of VAT to be paid in box 1 ‘Tax payable’ on your VAT return form. 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 and can be used for both one-off imports and regular imports. With the Article 23 licence, you can defer your import VAT. However, non-EU companies must appoint a fiscal representative to apply for the license and to manage the VAT on their behalf.
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.