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Fiscal representation

Within Europe there is VAT on generally all goods which are imported, bought or sold within the European countries. The VAT is charged as a percentage of the sales price of the goods. In the case of trading/reselling, the VAT already paid at purchase can be deducted from the VAT balance of the taxable person.To trade within the EU, any non-EU based company have to register for VAT (or use a limited VAT number) in the EU via a fiscal representative,Ā facilitating all communication with the tax authorities where all VAT declarations will be done in the proper way. In this way, the foreign organisation will get a VAT number in the EU to be used for all relevant transactions. Every month a VAT declaration will have to be filed at the national tax authorities which will be done by the fiscal representative. Having a VAT number means one can sell goods to any European entity, where goods can be sold to civilians or to businesses. If goods are sold in the country of registration, VAT has to be charged on the invoice. If goods are sold to a company in another member state, an intra-community transaction has to be applied stating 0% of VAT on send invoices.

Advantage of establishing your business in the Netherlands is that the Netherlands has implemented a so-called import VAT deferment system.

Through this system, the payment of VAT at import is postponed from the moment of submitting the import declaration until submitting the next periodic VAT return. The import VAT payable reported in the VAT return can in principle be deducted as input tax in the same VAT return. So on balance no import VAT is actually paid, leading to a cash flow benefit for the non-European organisation.

Timmermans transport & logistics can provide specialist services on import and export taxes for any client who performs their logistics via our organisation.

Fiscal representation