In current Dutch practice, the Dutch VAT group includes foreign establishments. This means that as soon as there is a VAT group in the Netherlands, foreign establishments, a foreign head office or a foreign fixed establishment, are also included in the Dutch VAT group. As a result, cross-border supplies to or from a foreign establishment remain outside the scope of VAT in the Netherlands. As of January 1 2024, this will unfortunately change. The consequences of this change are significant for the VAT treatment of supplies between entities that are part of a Dutch VAT group and that have foreign establishments. Especially in the financial sector, the Dutch cross-border VAT group is used. With the upcoming change, it is recommended to take action as soon as possible.
Source: BDO
Latest Posts in "Netherlands"
- Court Rules Sale-and-Leaseback Property Transfer Not Exempt from Transfer Tax
- Court Ruling: VAT Directive Violations, Zero Rate Conditions Unmet, Tax Reassessed, Penalties Partially Overturned
- Faster VAT Entrepreneur Qualification in Real Estate Transactions: Key Considerations and Legal Insights
- VAT Exemption for Bitcoin Exchange Transactions Under EU Court Ruling
- Netherlands Proposes New VAT Rules for Digital Platforms Offering Short-Term Rentals and Passenger Transport
