Introduction: What is the Challenge?
- The Problem: Are you facing cash flow pressure due to the need to prepay high import VAT when clearing goods into Europe? Are complex tax procedures slowing down your operations?
- The Solution: The Netherlands’ Article 23 VAT Deferment is a special tax benefit that allows companies to defer VAT payments at customs, alleviating cash flow pressure and expediting customs clearance. With MN Logistic International’s end-to-end logistics and tax services, we make it easy for businesses to benefit from this scheme while entering the European market seamlessly.
What is the Article 23 VAT Deferment?
- Definition:
The Article 23 VAT Deferment is a unique policy offered by the Dutch Tax Authorities (Belastingdienst) that allows importers to defer VAT payments from customs clearance to periodic VAT declarations (monthly or quarterly).
- Who Can Use It?:
- Both EU and non-EU businesses importing goods into the Netherlands through ports (e.g., Rotterdam) or airports (e.g., Schiphol).
- Non-EU companies can access this scheme by working with a Dutch fiscal representative.
- What Goods Are Covered?:
This scheme applies to all goods entering the EU via the Netherlands, regardless of whether they are distributed within the EU or exported to other regions.
Key Rules of the Article 23 VAT Deferment
Deferred VAT declaration
- Import VAT is not paid at customs; instead, it is deferred until the periodic VAT return.
- This reduces the immediate financial burden on businesses.
Eligibility
- Dutch-registered companies or non-EU companies with a fiscal representative in the Netherlands.
- Businesses must have a valid Dutch VAT number to apply.
How it works
- Businesses apply for the license through the Dutch Tax Authorities or with the help of a fiscal representative.
- Once approved, the license allows import VAT to be deferred at customs.
VAT reporting
- Deferred VAT is declared in the periodic VAT return, where input VAT can be deducted against output VAT, reducing the actual tax liability.
Advantages of Article 23 VAT deferment
Optimise cash flow
- Avoid paying import VAT upfront (often 21% of the goods’ value), freeing up cash for other business operations.
Increase operational efficiency
- Simplify tax management by consolidating VAT payments into periodic returns.
- Streamline the customs clearance process by removing the need for immediate VAT payments.
Customs coordination
- Speed up the clearance process by eliminating VAT payment delays.
- Especially beneficial for time-sensitive goods, such as electronics or fresh food products.
Manage financial risk
- By deferring VAT payments, businesses minimize financial exposure, particularly when handling high-value goods like machinery or luxury items.
Market competitiveness
- With lower operational costs and better cash flow, businesses can enter and compete in the European market more effectively.
MN Logistics value added services
As a leading logistics and tax solutions provider in the Netherlands, MN Logistic International offers a comprehensive range of services to help businesses maximize the benefits of the Article 23 VAT Deferral Scheme:
- Fiscal Representation Services:
- Assist non-EU companies in applying for Article 23 licenses.
- Handle VAT filings and ensure compliance with Dutch tax regulations.
- Logistics Support:
- End-to-end solutions for sea, air, and rail freight, ensuring seamless transport to and from the Netherlands.
- Full cargo tracking and management throughout the supply chain.
- Warehousing and Distribution:
- Secure storage for general goods, hazardous materials, and temperature-controlled products.
- Bonded warehousing facilities to support efficient inventory management and distribution.
- Multilingual Team:
- Our team understands your needs and ensures your requirements are accurately translated into effective solutions. We accomplish this with a multilingual team fluent in Mandarin, Malay, Dutch, English, and German, facilitating seamless communication and support.
- Office Support:
- To enable you to enter the European market without upfront investments and fixed agreements, we offer an office for hosting meetings, along with sales and administrative support for regular administrative tasks to the bookkeeping of your entity in the Netherlands.
If you are looking for a partner who understands both Chinese and Dutch business cultures, and who can provide you with a full range of professional support, then we are undoubtedly the best choice for you. With our services, you can focus on your core business and expand into Europe without worrying about logistics!