Budget day 2022 – E-commerce – No need to file VAT refund request if VAT receivable balance

An administrative simplificaiton for e-commerce

Bsinesses that account for Dutch VAT in another EU Member State on (internet) sales to Dutch private individuals, via the EU scheme, the non-EU scheme or the import scheme. Where these businesses make corrections/adjustments that lead to a negative Dutch VAT amount being reported in a certain taxable period (as a result of the amounts of the adjustments exceeding the Dutch VAT amount payable), this reported negative amount is treated as a VAT refund request so that no formal/additional VAT refund request needs to be filed. This new rule first has to be approved by the legislative bodies, and should have retroactive effect from 1 July 2021.

Changes to the VAT law

Sections 28rk, 28si and 28tm of the Sales Tax Act 1968 are amended as follows:
1. The designation “1.” is placed before the text. shall be placed.
2. Three paragraphs are added, reading:
2. If the total of the tax on the VAT declaration for the Netherlands for a tax period is negative, the VAT declaration for that total shall be deemed to be a request for a tax refund.
3. The inspector shall decide on the application for refund by means of a decision open to objection.
4. Section 4.1.3 of the General Administrative Law Act shall apply to the applications for refund of tax.

Source

• Jeroen Bijl
• Amendment of some tax laws and some other laws (Other tax measures 2022)
• Baker & McKenzie
• Deloitte

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