The Netherlands – Gateway to the EU for UK Businesses
Many UK businesses are choosing the Netherlands as their gateway to the EU following the end of the Brexit transition period either by setting up a local entity or using its logistics capabilities. Sovos can help companies needing to know more about the VAT implications.
The Netherlands is attractive as it operates several business facilitation measures for imports. One benefit is postponed import VAT accounting which operates in the same way as the new scheme introduced into the UK from 1 January 2021. This provides a significant cash flow benefit as there is no need to fund the VAT. Unlike the UK where no approval is required, it is necessary to obtain a specific licence to use postponed accounting in the Netherlands which Sovos can obtain on your behalf.
When trading in the EU from the Netherlands, full consideration should be given to the indirect tax implications of the new supply chains that will be introduced. Sovos can provide expert VAT advice on the implications of your supply chain in both the Netherlands and across the EU. This will ensure you are aware of the implications of the supplies being made and what you need to do to become and remain compliant.
Once the compliance obligations are identified, they need to be managed efficiently to minimise risk for the business and maximise the benefits of using the Netherlands as a hub. Sovos can provide VAT compliance services in the Netherlands and in all Member States of the EU. This will ensure VAT returns and other declarations are submitted efficiently ensuring ongoing compliance. Fiscal representation isn’t necessary for UK businesses in the Netherlands unless an import VAT licence is required but a number of Member States still impose that requirement. Sovos offers this service in the Netherlands and as required across the EU ensuring that you can trade compliantly.
If you’re an e-commerce business using the Netherlands as a hub for selling to customers across the EU, you’ll need to consider the EU’s VAT E-Commerce Package due to be introduced on 1 July 2021. This will significantly change the way VAT applies to e-commerce transactions in goods introducing the requirement to account for VAT in all Member States where goods are delivered. The EU is implementing a One Stop Shop to ease the compliance burden allowing a single VAT return to account for VAT in all Member States. However, the scheme is complex. Careful planning is required to ensure the benefits are realised. There is also an Import One Stop Shop for imports of goods up to €150 which can be used as part of a fulfilment strategy for e-commerce customers. Sovos can help you fully understand the Package and options available to ensure informed decisions are made.
To find out how Sovos can help your business with VAT compliance, contact us today.