Source: taxlive.nl (Dutch)
[Note from the editors (Kelvin and Bas):
Many companies have received a letter from the Dutch tax authorities, warning them that after the Brexit any purchase of goods coming from the UK will become imports instead of intra-Community acquisitions. This means that the arrival of the goods in the Netherlands triggers a VAT payment. This import VAT can be deducted on the Dutch VAT Return, but that takes time, and thus results in VAT cash-flow costs.
It is possible to apply for a so-called ‘article 23 license’, which allows importers to apply the reverse charge for VAT upon the importation of goods into the Netherlands from non-EU countries.
However, it should be noted that companies should consider before applying for such a license if they really need and want this. If the amount or number of imports is low, an article 23 license may not be necessary or worth it.
An additional consideration for companies can be to review their purchase agreements with UK suppliers and check the delivery terms that are being used and will be used after the Brexit. If UK suppliers use the Incoterm DDP, this means that the supplier will take care of the importation of the goods. Your suppliers may not be aware of this, but it may trigger additional requirements for them.
Also, if there is a group of companies in various EU countries, it may be worthwhile to see if all deliveries from the UK can be routed via the Netherlands, using the article 23 license. Not all EU countries have this possibility for applying the reverse charge on the importation of goods, and when routed via the Netherlands, it may save VAT cash-flow costs for the group as a whole.
We, Kelvin and Bas, are available if you have any questions about this. Please feel free to contact us at [email protected] ]
