VAT RULES

VAT RULES 2018-03-15T10:11:08+00:00

Invoice requirements

Based on the VAT legislation the following invoice requirements are mandatory in ALL circumstances:

  • date of issue of the invoice
  • an unique sequential invoice number
  • a VAT Rep quote (provided by DVR) in case of VAT representation
  • the suppliers’ and customers’ full name and address
  • the address of destination when different from the address of the customer
  • the quantity and nature of the goods and services supplied
  • date of the supply concerned
  • the taxable amount per rate or exemption, the unit price exclusive of VAT and any discounts or rebates if these are not included in the unit price
  • VAT rate applied
  • The VAT amount payable in Euro! (mostly 0)

Additional mandatory information depending on the type of supply:

  • where the customer is liable to account for VAT (reverse charge mechanism), the customers’ VAT-identification number and the following phrase:
    “VAT to be declared by customer due to reverse charge mechanism, article 12-3, Dutch VAT act”
  • where an exemption applies: any stipulation to make this clear
    in case of an intra-community supply, the customers’ VAT-identification number and the following phrase:
    “0% Dutch VAT intra-community supply, art 138 VAT Directive”
  • in case of an export supply, the following phrase is highly recommended:
    “0% Dutch VAT export supply, art 146 VAT Directive”
  • in case a supply of non-EU goods (not imported into the EU), the following phrase is highly recommended:
    “0% Dutch VAT, T1-material, Table II, post a.1, Dutch VAT act”

Deadlines

Vat compliance in case of general VAT representation or in case of a VAT registration must be done at strict dates.Also the payment of VAT should be done within the deadlines.

For VAT returns on a quarterly basis:

Filing period Upload information by client Deadline VAT return Deadline for payment
January 1st – March 30th First quarter before April 15th April 30th April 30th
April 1st – June 30th Second quarter before July 15th July 31st July 31st
July 1st – September 30th Third quarter before October 15th October 31st October 31st
October 1st – December 31st Fourth Quarter before January 15th January 31st January 31st

For IC listings:

Filing period Upload information by client deadline IC sales listing
January M01 before February 15th before February 28th
February M02 before March 15th before March 31st
March M03 before April 15th before April 30th
April M04 before May 15th before May 31st
May M05 before June 15th before June 30th
June M06 before July 15th before June 31st
July M07 before August 15th before August 31st
August M08 before September 15th before September 30th
September M09 before October 15th before October 31st
October M10 before November 15th before November 30th
November M11 before December 15th before December 31st
December M12 before January 15th before January 31st

Value Added Tax (VAT) = consumption tax on value added to goods and services.
VAT due = % of the sale price with right to deduct all VAT already paid at the preceding stage.
VAT will be charged on imports and any supply of goods or services made on the territory of an EU country.

Main rule

A supply of goods is subject to VAT where:

  • Goods are located at time of supply
  • If transported in connection with supply: where transport starts
  • If imported: in EU country of import

Key features of VAT

  • Paid to Tax Authorities by seller
  • Actually paid by buyer to seller as part of the price
  • Exports are 0% rated
  • Imports are taxed
  • VAT zero rated supplies: most benefits with purchaser, yet all risks with supplier
  • In case of assessments: direct hit on trade margin; not only VAT, but also related penalties (25% up to 100% of VAT amount in case of non-disclosure) and/or interest
  • Indirect effects: reputation with Tax Authorities, customers, etc.

VAT registration obligation

  • Buying & selling goods in another country
  • Importing goods into EU
  • Stock transfers
  • Holding goods in warehouses in other EU countries for customers
  • Consignment stock
  • Holding a live conference, exhibition or training if paid entrance
  • Selling goods to consumers over the internet (distance selling)
  • Supply and instalment of equipment
  • Some situations where services are being provided (short term rent cars)

Based on the European VAT directive the timely VAT registration obligation is an own responsibility of the company. We can assist you if you should need a VAT registration for past periods.

We can divide between 3 types of inbound flows of goods

  1. Domestic buys: buys from a NL seller. Example: Products sent to your NL warehouse from NL Suppliers. 21% / 6% VAT to be charged on the invoice. We will recover this VAT as input VAT in the quarterly VAT return.
  2. EU buys: buys from a seller located in another EU country. Example: A supplier in Portugal sells and ships product to your warehouse in the Netherlands.
    This is a zero rated supply by the seller. We will report an Intra community obtaining in the quarterly VAT return and invoices have to be archived for 7 years.
  3. Imports of goods from outside the EU leads. (China, Korea, US): goods customs cleared in the Netherlands. Dutch VAT (and possible import duties) are due at the moment of importation.
    Paying VAT upon importation can be avoided by appointing DVR as your general VAT representative. Imports have to be reported in the quarterly VAT return without any import VAT due.

For more information about particular rules, contact us to watch our webinars on demand.

There are 3 main types of outbound flows.

  1. Domestic supplies: Local sales in the Netherlands. If B2B to a Dutch resident customer: No VAT due. VAT is reversed charged. Otherwise VAT has to be charged. Reported in quarterly VAT return.
  2. EU supplies: Goods are shipped between 2 EU countries. This is a so called intracommunity supply. 0% VAT applies if the conditions are met (proof of delivery and proof of transport are required). Reported on ICP Declaration and VAT return.
  3. Export supplies: Goods transported from an EU country to a non-EU country. 0% VAT if conditions are met (proof of export). Reported in VAT return.

Special rules might apply in particular cases. Also note that special invoice requirements apply. We will inform you about these during the VAT registration process.

For more information, please attend our on demand webinar.

Compliance

We take care of the reviewing and preparation of the periodical VAT returns, ICP Declarations and Intrastat filings.

For VAT returns the following rules apply:

  • Quarterly VAT return (monthly is optional; e.g. in case of credit position)
  • VAT returns have to be filed and VAT due (if any) has to be paid before the end of:
    • January (Q4 prior year)
    • April (Q1)
    • July (Q2)
    • October (Q3)
  • Electronic submission through our portal
  • Errors in past return: Compulsory disclosure (supplementary return)
  • Failure to disclose or pay VAT within due time: additional penalty

ICP Declaration

  • IC Supplies List: Specification on purchaser level of IC-supplies
  • This requirement is quarterly, but monthly if threshold for IC-supplies of goods is exceeded (50.000 Euro on a quarterly basis)
  • Electronic submission through our portal

Intrastat

  • This concerns a monthly filing regime for Dispatches & Arrivals of goods across EU if the threshold is exceeded
  • Thresholds may be different for dispatches from a country (sales) vs. arrivals (purchases) within the same country
  • Thresholds are much higher than the VAT registration thresholds
  • The physical movement of the goods = leading for Intrastat
  • Electronic submission

Dutch VAT Rates 0, 6, 21 %

General rate 21 % On all products and services unless specified in Table I or II of the Dutch VAT Act
Reduced rate 6 % On all products and services specified in Table I of the Dutch VAT Act: ranging from books, to prosthesis, to art, to certain devices for self diagnoses, to transport of people and preparing bicycles.
Zero rate 0% On all products and services specified in Table II of the Dutch VAT Act: ranging intra community sales, from goods that are exported, ships (for sea), goods that are under a customs entrepot, gold for central banks.

Please note that any other rate then the general rate is an exception. An exception is only applicable when all requirements are met.

For more information about the invoice requirements, the filling dates or the VAT rates, or any other VAT rules, please do not hesitate to contact us.