You should state on the invoice 'VAT reverse-charged'. Fiscal Representation In some instances, this kind of reverse charge also applies when the supplier is established. Your client is established as entrepreneur in the Netherlands. The VAT reverse charge effective dates have been updated to 2020 within the guidance. to a company of your own located in an The Tax and Customs Administration website provides information on the different VAT rates. VAT relating to purchase and sale of goods. Extended reverse charge. If the supplier incurs any local VAT on costs related to the service or goods supplied under the Reverse Charge, they may recover them through an EU VAT reclaim. There will be no VAT reverse charge applied to this transaction. The application of the reverse charge is extended in the Netherlands. The conditions and scope are different in each case. The situation is that you are selling a number of goods exceeding the maximum amount, which can be different per EU country, that makes it obligatory for you to file the VAT returns in that … It is not relevant if the supplier is registered or not. Services provided by a non-established to a VAT registered customer in the Netherlands are subject to the reverse charge and the customer accounts for the VAT. As we mentioned in our March briefing a new VAT reverse charge for building and construction services is being introduced. Please contact us if you would like details of how the extended reverse charge applies in the Netherlands. Periodical VAT returns must be submitted by electronic means to Dutch VAT authorities before the end of the month [last day of N+1] following the tax period. In such cases the VAT is usually reverse-charged to the client. If you buy goods with the intention of subsequently transporting them to another member state, e.g. In case the customer is a private individual, B2C rules locate the transaction where the supplier is located. We are a small company offering services (training)to UK and EU countries. If a company is otherwise a non-VAT trader, but is receiving services in Netherlands under the reverse charge rule. The OMP must notify the overseas seller that they should account for VAT on a particular sale where a … Where these exceptions apply, reverse charge is still applicable in the Netherlands provided domestic reverse charge conditions are met: The general rule may also be deviated where the supplier has a permanent establishment in the country of the customer and the PE has intervened in the supply.". When and how to apply this mechanism is explained below. Also, non-established companies can be taxable dealers for the purposes of this reverse charge, hence it would apply even if the customer is not established, Mobile phones, computer chips, IT equipment including laptops, tables and game consoles where the sale value exceeds €10,000, Construction work and ancillary services from a subcontractor to a contractor and from a contractor to a self-builder, Supplies of goods released from a VAT warehouse, Immoveable property (where opted to tax) irrespective of supplier and customer status, Old used materials, scrap and waste irrespective of supplier and customer status, Goods provided as security by one taxable person to another as part of a security. This applies in the following cases: Your client is an entrepreneur who is established in the Netherlands or who has a permanent establishment here. You must then account for VAT in your business accounts under the reverse charge VAT mechanism. Passenger transport services will be located where the transport takes places (apportioned if necessary). What do I do if the VAT reverse charge for construction services doesn’t apply to the services … Your client is a legal entity (for example, a plc or a foundation) that is established in the Netherlands. In the Netherlands, the standard VAT rate is 21%. You must activate Javascript in order to view this website. If you wish to import goods into the Netherlands and you are looking for a partner to be your fiscal representative and to help you reverse-charge VAT, Vat Rep Info would be glad to help. It was created in the European Union to simplify cross EU border trade. in the Netherlands, your supplier charges you VAT. 29 August 2019. Intra-EU supply of a new means of transport – the details specified in Article 2 (2) (b) of the VAT Directive (e.g. The lower VAT rate of 9% applies to a number of products and services, such as food products, medicines, books (also e-books), newspapers, magazines, online publications, and paint and plaster work … You issue an invoice without VAT and you state ‘VAT reverse-charged’ on the invoice. As of 1 January 2021 this requirement now includes the countries within the EU. For supplies of services from outside the UK you must account for VAT under the reverse charge procedure. According to the general B2B rule, any business resident outside the Netherlands supplying services to a Dutch based customer will not charge any VAT and the transaction will be reverse charged by the customer. The VAT is reverse-charged to your client. The B2B rule locates the transaction where the business customer is located. Where it applies, you act as if you’re both the supplier and the customer. You are a Belgian entrepreneur and you carry out painting work in a building belonging to a Dutch entrepreneur. The reverse-charge mechanism on import means that you are not required to pay the VAT on import immediately. Reverse VAT will apply to all relevant invoices, authenticated tax receipt or self-billing invoices dated on or after 1 October 2020, regardless of when the contract for the construction services began or when the work was carried out. ESL and IPC Declaration, Due date and frequency of Dutch ESL returns, Frequency and due dates of Dutch Intrastat, Dutch nil and corrective Intrastat returns, VAT Number Germany: Difference between Steuernummer and VAT ID numbers (USt-IdNr). for a car, its age and mileage). However, this is often reverse-charged to the Dutch company purchasing the goods or service. The reverse charge mechanism is for intra-EU Business to Business sales. Supply of services not reverse charged: Foreign non-established businesses supplying services on which Dutch VAT is due by the supplier must register for VAT. For further information about reverse charge VAT, please contact your local HM Customs and Excise (HMRC) office or visit their website. You issue an invoice without VAT and you state ‘VAT reverse-charged’ on the invoice. Natural gas and electricity must be reverse charged where supplied by a non-established supplier to a "taxable dealer". You do not charge your Dutch customer any VAT; the VAT is transferred to the customer (see section 3.2.1). Javascript is disabled in this web browser. More information, Not established in The Netherlands (irrelevant if the supplier is registered or not for VAT), Supplies of goods and supplies of services located in The Netherlands, Generate your upload file for Spanish ECSL return (Modelo 349), Import VAT deferral and postponed import VAT in The Netherlands, Customs warehouse and VAT warehouse in The Netherlands, Global VAT numbers – Dutch limited fiscal representation, Reverse charge for non-established suppliers, Dutch ECSL returns. Download the reverse charges map now . The VAT domestic reverse charge procedure is an anti-fraud measure designed to counter criminal attacks on the UK VAT system by means of sophisticated fraud. Example of reverse-charging relating to goods. You are not usually involved with Dutch VAT. This means that your client pays the VAT and not you. Where a non-established supplier supplies goods or provides services located in the Netherlands to a VAT registered and established customer, domestic reverse charge applies. Where a non-Dutch business makes supplies of goods or services in the Netherlands which are subject to Dutch VAT, then it should in principle charge that VAT to the customer. However, for foreign taxpayers not established in the Netherlands but registered for VAT purposes in this country, a two-month period applies [last day of N+2]. The Netherlands is the only country in the European Union (EU) with a favourable import tax facility, called article 23 license VAT. Published 1 July 2014 Last updated 31 December 2020 — see all updates. Access to conferences, fairs and exhibitions is located where the event takes place. You are not usually involved with Dutch VAT. The VAT regulations 1995 say invoices for services subject to the reverse charge must include the reference ‘reverse charge’. Domestic reverse charge may also apply on certain goods and services in The Netherlands. Under reverse charge mechanism, the recipient has to pay the tax has to the government, instead of the supplier. If you buy and receive services for business purposes from another EU country (In this case, the 27 EU member states + the UK (until the end of the transition period). Article 196 of the VAT Directive requires the reverse charge mechanism on all services subject to the B2B rule introduced in art. Download our interactive map to see where reverse charge currently applies across Europe, and whether it applies to selected goods, or to all goods. The self supply of goods. Where a non-established supplier supplies goods or provides services located in the Netherlands to a VAT registered and established customer, domestic reverse charge applies. In order to do this, you will need an Article 23 permit. The Reverse Charge mechanism was created when the European Union Value Added Tax system was reformed for the launch of the single market in 1993, to help simplify the VAT reporting across the 27 member … This is, for example, the case for supplies of services connected to immoveable property. The Netherlands has introduced this reverse charge on supplies of goods and services located in The Netherlands. According to art 194 of the VAT Directive, Member States may implement an optional reverse charge on supplies made by non-established businesses. We use cookies to offer an improved online experience. Short term leasing of means of transport are located where the vehicle put at the disposal of the customer. under the reverse-charge procedure) – the words ‘ Reverse charge ’. Buying services from another EU country. Here are some examples of wording that meet the legal requirement: This map provides you with a general overview of countries in which you as a customer should account for VAT, and is correct at the time of publishing. VAT and the provision of goods and services in the Netherlands If you supply goods or services in the Netherlands to a Dutch company or legal entity with its registered office in the Netherlands, you are in principle required to pay Dutch VAT. There are however a number of exceptions to this rule. The impact of the coronavirus means that the implementation date has been pushed back until 1 March 2021 having already been postponed due to the impact of Brexit. This means that your client pays the VAT and not you. There is a very limited requirement to VAT register non-resident companies if they are providing services. We offer advice … For goods imported from anywhere in the world, they had to account for import VAT. The reverse charge moves the responsibility for recording the VAT transaction to the buyer from … Prior to Brexit/end of the transition period, VAT-registered businesses in Great Britain applied VAT through the EU reverse charge on intra-community acquisitions. The VAT which is accounted for under the reverse charge may be recoverable in the same VAT return as input VAT insofar as your business activities entitle you to recovery of input VAT. Your client is an entrepreneur who is established in the Netherlands or who has a permanent establishment here. Holding live exhibitions, events or training in Netherlands. There are two additional special rates: the 9% rate and the 0% rate (zero rate). The VAT can then be paid when you file your VAT return. Example of reverse-charging relating to services. As it does in the UK if UK business buys services from EU seller, an exempt or unregistered UK business buying services from EU supplier, the EU supplier will treat as outside scope, UK business then has to reverse charge that and if it takes the business over the £85k VAT registration threshold, the UK business has to register for VAT.....mostly catches out charities … Do we need to register to collect VAT eg in Netherlands or can I still use the reverse charge if Company has VRN. The Netherlands has introduced this reverse charge on supplies of goods and services located in The Netherlands. In this scenario, the service qualifies as a B2B service which you may be required to report in your periodic VAT return under the reverse charge mechanism as a service purchased from outside the EU. You supply goods or services in the Netherlands. Domestic supply of goods not reverse charged: A supply of goods located in the Netherlands where reverse charge does not apply requires a VAT registration of the supplier. It is not relevant if the supplier is registered or not. Reverse-charge mechanism on import: Article 23. VAT Reverse charge in The Netherlands Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due. The VAT is reverse-charged to the client. Within Sage Accounting , we will automatically work out where reverse charge VAT needs to be used and apply it automatically, so you can be sure the VAT is recorded correctly on your VAT return. You are permitted to deduct the VAT charged over any related costs you have incurred. Telecommunication services (since June 2017). Yes it can, under the 194 EU directive non resident VAT entrepreneurs in the Netherlands that do have a Dutch filing obligation, can sell at 0% VAT reverse charge rate. The Netherlands has a simple VAT rate structure with only a standard VAT rate and one reduced VAT rate. If you are based in the Netherlands and you do business in other countries, the 0% VAT rate may apply. Dutch VAT rates The standard VAT rate in the Netherlands is 21%, with a reduced rate of 6% for foodstuffs, books, passenger transport, hotel accommodation, and other goods and services. Summary of tax rates at Belastingdienst.nl. Import VAT. Customer liable for the tax (i.e. This applies in the following cases: If the reverse-charge mechanism applies to you, then you may not include any VAT on your invoice. ), you must declare and pay VAT on the transaction as if you had sold the services yourself, at the applicable rate in your country (using the reverse charge procedure). Services connected to immoveable property are located where the property is located. Don’t forget to account for the Reverse Charge. You are a German entrepreneur, you have goods in Rotterdam and you supply these to an entrepreneur established in the Netherlands. There are many variations to the rates above, including exempt taxable supplies. Some goods and services are exempt from VAT. As foreign entrepreneur, you are not able to apply for an Article 23 permit yourself. The Dutch VAT regime ( btw, omzetbelasting) has 3 rates : 0%, 9% and 21%. Catering services are located where the catering takes place. In such cases the VAT is usually reverse-charged to the client. We used to do Reverse charge to our EU countries pre Brexit. The following wording should be stated on the invoice when domestic reverse charge by non-established suppliers applies: "btw verlegd / Reverse charge applies according to article 12, para 3 of Dutch VAT law". 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