Fiscal and Customs advantages in The Netherlands

The Dutch fiscal and customs systems facilitate the import and export. This, providing the authorities with quick and secure trade-lanes, benefit companies doing business in Europe via The Netherlands. The processes, based on mutual agreements and a system of EU licenses, streamline the validation of documents and minimize red tape and customs checks. MOL Logistics customs services MOL Logistics has an extensive portfolio of licenses enabling us to support customers with a variety of services related to transport and customs formalities. The following activities will be further described in this article: Customs bonded warehousing Fiscal Representation for the VAT due at import Automated customs procedures Customs bonded warehousing: more financial space When goods are brought into the European Union (EU), VAT and other import levies become due and should be paid. No problem if the goods are directly delivered to a customer in the EU. However, when the goods are either not directly required or even not actually sold yet, these costs have an impact on your financial position. Storage in a Bonded Warehouse offers a solution. Storing the goods under “customs bond” suspends the payment till the moment that the goods are actually delivered to a destination in the EU. There is no limit on the period of storage. Alternatively the goods can also be released from storage using a Customs Transport document for delivery to any destination. This shifts the responsibility for the actual place and moment of import to the receiving party. Goods can also be brought outside the territory of the EU which means in the end nothing is paid or has to be reclaimed because of this. This flexibility can result in considerable cash flow advantages for non-EU entrepreneurs. In short: by storing the goods in a customs bonded warehouse, payment of customs duties can be postponed until the buyer is known. If the goods are meant to be delivered to buyers outside the EU, no VAT at import and customs duties become due at all. Fiscal Representation with VAT deferment system In contrast to most other EU member states, The Netherlands have implemented a system that allows for the deferment of VAT at import. Instead of paying VAT when the goods are imported into the free circulation of the EU, the VAT can be deferred to a periodical VAT return. In this periodical VAT return, the VAT at import must be declared, but this amount can be deducted in the same Tax-entry. Bottom line: there is no actual payment of VAT at import. This results in a considerable cash flow benefit. Basically only Dutch entrepreneurs or foreign entrepreneurs with a permanent establishment in the Netherlands can apply for the necessary license for this deferment. However, in order for a non NL based company to benefit from this system, foreign companies can for VAT purposes appoint a Fiscal Representative in the Netherlands. There are two types of representation. The basic version in which goods which are imported must subsequently be sold and transported to a buyer anywhere in the EU. The extended version also facilitates purchases from the EU and storage of customs cleared goods. The duties, if applicable, are paid but the VAT is deferred within the Tax entry awaiting the sale. As with the Bonded Warehouse there is no limit to the period of storage. Automated customs procedures All communications with Dutch Customs are digital using a platform they provide. Within these systems most decisions are automated based on an build-in intelligence. As a result of this the approval is fast and costly delays are minimized. Questions: ask Leon Kievit, Manager Customs Compliance Manager

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