Q&A on tax (VAT & CIT) regulations for Foreign Company with Non-Resident status in Netherlands

Email: ams4ww@evershinecpa.com
The Engaging Manager from Headquarter
Ms. Anna Wang, Speak Dutch, English and Chinese.
skype: burlinna

NR-NL-110:
Can a foreign company with Non-Resident status apply for a VAT number in Netherlands? If can, is it necessary to pay for the corporate income tax?
Official website? Application form?
Answer:
According to BNA VAT Navigator 9.2 and BNA Country Guide 2.2.2.
A nonresident entity is allowed to register the VAT number in Netherlands.
Nonresident companies are generally only taxed on business income derived from a permanent establishment in the Netherlands.
Forms can be downloaded in Dutch Tax and Customs Administration website at the below link:
1. Application for VAT identification number for Foreign Entrepreneurs form:
VAT for non-resident businesses
2.Registration forms foreign companies:
Registration form Foreign companies

NR-NL-120:
If the foreign entity with Non-Resident status appoints an agent to applied for a VAT number in Netherlands:
What is the official name of the agent?
What qualifications does the agent need?
Is the agent jointly and severally liable to the Netherlands tax bureau?
Does the Non-Resident Entity need to pay for profit-making enterprise income tax?
Official website?
Answer:
According to BNA VAT Navigator 10.4.
According to:
Tax representative

In Netherlands it is called fiscal representative.
If engage a fiscal representative, then you will not usually be obliged to register yourself as taxpayer for the VAT with the Tax Administration.
Customs forwarding agents, who take care of import and export formalities for entrepreneurs, often act as fiscal representatives as well.
The fiscal representative can take care of the following tasks such as completing VAT return, ICP declaration and
pplying the reverse-charge mechanism on import.

Requirements of fiscal representative:
The fiscal representative must satisfy at least the following requirements:

1. He must be established in the Netherlands.
2. He must provide financial security for the VAT.

Fiscal representative with a general license is jointly liable for any underpaid VAT, any interest due, and any administrative penalties due by the principal up to the amount of the security each calendar year.

While fiscal representative with a limited license is jointly liable for the whole amount of the tax due, interest and administrative penalties.

For fiscal representative to be granted a limited or general license, the principal must provide security to guarantee the representative’s obligations.

NR-NL-130:
What are the circumstances that a Non-Resident Company in Netherlands will not be consider as having permanent establishment (PE) in Netherlands? And what circumstances will be considered as having PE in Netherlands?
Answer:
According to BNA Country Guide 2.1&2.2.
According to:
What is a foreign entrepreneur?
Deemed not having PE:
Storage spaces or goods depots, for example, are not considered to be permanent establishment.
Support tasks, such as research, advertising and supplying information, are also not included under the meaning of a permanent establishment.

Deemed as having PE:
The Dutch treaty definition of permanent establishment is generally in line with the OECD definition.
It defines as a fixed place of business through which the business of an enterprise is wholly or partly carried on.
A construction site only constitutes a permanent establishment if it lasts more than 12 months.
Having a shop or other fixed sales point, a workplace or factory with an office are examples of a permanent establishment.
Treatment permanent establishment for services, customer downloads, website access or cloud services is generally in line with the OECD Guidelines.

NR-NL-210:
Does Netherlands have Free Trade Zone and bonded warehouse system? How do foreign businessmen use the Free Trade Zone to obtain tax concessions?

Answer:
The Netherlands has no free trade zones (FTZs) where commodities can be processed or reprocessed tax-free.
However, FTZs exists for bonded storage, cargo consolidation, and reconfiguration of non-EU goods.
The advantages of a Customs-bonded warehouse:

• Avoidance of double duty payment
• Postponement of duty payment
• Possibility of storage for an unlimited period of time
• Less customs interference
• Value added logistics (assembly, configuration) in a customs-bonded warehouse.

NR-NL-220:
Can a foreign company rent a bonded warehouse in Netherlands Free Trade Zone under the name of a foreign company?
Can a bonded warehouse held under the name of a foreign company as a holder of the import and export documents?
Or can it be held by a cargo agent?
Answer:
Foreign company can rent a bonded warehouse in Netherlands.
Foreign company can be the holder of the import and export documents in Netherlands.
It can be held by a fiscal representative in Netherlands.

NR-NL-230:
Are there any similar roles as IOR (Importer Record in Germany), Tax Agent (Germany), Fiscal Representative (Netherlands), Registered Agent (USA Texas), ACP (Japan)?
How to avoid situation where the VAT cannot be deducted as input tax?
Answer:
According to the below link:
Import from non-EU countries to the Netherlands
Foreign companies are not able to apply the reverse-charge mechanism over the import of goods from non-EU countries.
However, you can use of a fiscal representative in Netherlands.
Such a representative can apply the reverse-charge mechanism on import from non-EU countries on your behalf.
In such cases you will not be required to pay Customs the VAT on the import declaration.
If you do not have a tax representative, then you will be required to pay Customs the VAT on the import declaration. 
A foreign companies will not be able to shift import VAT to the VAT return unless he appoints a fiscal representative.

NR-NL-240:
What are the ways of dealing with custom duties and VAT when a foreign company sells to domestic customers in Netherlands from a warehouse in the bonded area in ​​Netherlands?
What are the differences when paying for the CIT in Netherlands?
Answer:
Import duties and VAT are only payable when the goods leave the bonded warehouse and are released onto the EU market.
According to the below link:
I am supplying goods from outside the EU – the Import scheme

If your company established outside the EU and supply to customers in EU countries who are all private individuals that do not have to submit a VAT return, if the concerns goods that are not yet in the EU, you may be able to use the import scheme.
This is so-called distance selling from outside the EU.
If you have domestic importer, use the Import scheme, you do not pay import VAT.

NR-NL-250:
Foreign companies rent warehouses from bonded warehouses in bonded areas in Netherlands, and then sell the items to domestic customers in Netherlands. Will this make foreign companies Non-PE into PE and need to keep accounts and pay income tax?
Answer:
Deemed as having PE and required to pay CIT:
Nonresident companies are generally only taxed on the following Dutch source types of income:

• Business income derived from a permanent establishment in the Netherlands that has definition in the OECD Guidelines.
• Income derived in relation to a “substantial interest” in a Dutch company.
• Income and gains from Dutch real estate property and
• Income from exploration and exploitation of natural resources on the continental shelf of the Netherlands.
  However, if foreign companies sell goods in a certain bonded warehouse in the Netherlands, appointing a fiscal representative is required.

NR-NL-310:
For Amazon and other e-commerce B2C, the Netherlands government stipulates that natural persons should declare customs duties and VAT when importing. How they deal with it?

Answer:
According to:
Import taxes on consignments received from businesses abroad
Usually, the courier company that is in charge of transport will submit the report (value and description of the goods) to Customs.
If the import taxes such as import duty, VAT and excise duty are not paid by the sender to the courier company, the courier company will charge these costs to you upon delivery.

Contact Us

Amsterdam Evershine BPO Service Limited Corp.
Email: ams4ww@evershinecpa.com
The Engaging Manager from Headquarter
Ms. Anna Wang, Speak Dutch, English and Chinese.
skype: burlinna

or
For investment structure relevant to multi-national tax planning and Financial & Legal Due Diligence for M&A (Merge and Acquisition), send an email to HQ4ams@evershinecpa.com
Dale Chen, Principal Partner/CPA in Taiwan+China+UK will be accountable for your case.
LinkedIn address:Dale Chen

Additional Information

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(version: 2024/07)

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