Customs Support Advises Fiscal Representation for Companies Importing from the UK

Customs Support Advises Fiscal Representation for Companies Importing from the UK

Jens Hartkoorn
Tax Accountant

When British companies import goods into the Netherlands to sell them to their customers in the Netherlands they have to pay Value Added Tax (VAT). They can redeem VAT from the British Tax Authority, but that can take time. And with cash flow, time is money.  

Postpone Paying VAT When Importing 

Companies registered in the Netherlands can postpone paying VAT when importing goods into the Netherlands. Registering your company in the Netherlands can mean more administrative hassle than you want. Fortunately, there are other ways to still benefit from postponing VAT. 

Foreign companies that are not registered in the Netherlands, but do wish to postpone VAT payment can use Fiscal Representation to do so. 

What is Fiscal Representation 

Fiscal representation means that a company registered in the Netherlands acts as a representative of your company when it comes to filing taxes and maintaining the administration of the VAT. A special permit is needed for representing foreign companies for tax purposes. Customs Support Group has such a permit. 

If you appoint a fiscal representative, you can use a scheme called “article 23”. Dutch VAT law has the possibility to postpone the charging of VAT upon import. The liability to account for VAT is shifted from customs to the importer of record. That importer “self imposes” VAT due upon receiving the goods and filing its periodical VAT return. The self computed and self-imposed VAT may be deducted as input VAT in the same VAT return, avoiding any cash flow. 

Contact Us 

If you have any questions about fiscal representation, please contact one of our specialists. They are happy to help.