L&A Freight B.V

VAT deferment

General Fiscal Representation

Limited Fiscal Representation

Attractive for foreign trading companies with a Dutch-based legal entity also is the so-called Article 23 VAT deferment License under Dutch tax law. The authorization enables avoiding paying VAT at the moment when the goods that are imported and are cleared for customs by the freight forwarder or customs broker. The import VAT amount will be reverse charged on a subsequent tax return, resulting in a nil payment of the tax.

VAT represents a critical factor in a business’s cash flow and potentially a real bottom line cost. Fiscal Representation is essential for companies that are not established in the Netherlands. In principle, non-resident companies making taxable supplies of goods and/or services in the Netherlands need to register for VAT purposes. E.g., companies releasing products for free circulation in the Netherlands and making subsequent supplies to customers in the Netherlands or abroad. As a consequence, the non-resident company with a Dutch VAT registration must submit periodic VAT returns.  Enabling trade opportunities and establishing a  business relation, in good conscience L&A can act as your fiscal representative and therefore take care of your registration and will prepare and submit your VAT returns, your European Sales Listing and Intrastat declarations if applicable. 
With Fiscal Representation, your company also can import goods without paying import VAT.  There are two kinds of Fiscal Representation; General Fiscal Representation (GFR) and Limited Fiscal Representation (LFR)

A fiscal representative with a general license acts on behalf of a non-resident company concerning all its supplies of goods and services for which Dutch VAT is due, intra-Community acquisitions and the import of goods.  You do not need to make a profound study of the Dutch or EU VAT rules. However, perhaps even more important is that you, as a non-resident entrepreneur, can apply the import VAT deferment system, resulting in not paying import VAT and thus cash flow and interest benefits.  In practice, you will get your VAT number and import deferment license. L&A will act on behalf of your company to enable the clearance and to report the import and all your sales, intra-Community acquisitions or services rendered.

A fiscal representative with a general license acts on behalf of a non-resident company concerning all its supplies of goods and services for which Dutch VAT is due, intra-Community acquisitions and the import of goods.  You do not need to make a profound study of the Dutch or EU VAT rules. However, perhaps even more important is that you, as a non-resident entrepreneur, can apply the import VAT deferment system, resulting in not paying import VAT and thus cash flow and interest benefits.  In practice, you will get your VAT number and import deferment license. L&A will act on behalf of your company to enable the clearance and to report the import and all your sales, intra-Community acquisitions or services rendered.