Our main aim is to avoid the pre-financing of VAT on imports. But the European VAT regime can often be complicated when it comes to international trade, as legislation and regulations are constantly changing. We understand that you need a knowledge partner who knows all the rules that apply to VAT and who can guide you through this complex process. We ensure that the European VAT regime works in your favour and that your cash flow is improved. With fiscal representation, you can import and sell goods in the EU without paying import tax. Our fiscal representation solution makes import and sales in Europe simple.
Advantages of fiscal representation
We act as your fiscal representative, so that you don’t need to pay import tax when you import goods into the EU. This rule applies to imports into the Netherlands and Belgium for the distribution to all EU countries. We ensure that all your processes are compliant with customs regulations. If you are involved in B2B trade, you don’t even need an individual VAT registration. As your fiscal representative, we take care of the payment of your import duties.
Our tax-related solutions
We offer support through various tax-related solutions:
Our solutions can also be used for both B2B and B2C trade. As we want to offer you the best possible service, we need a few details. Please complete this questionnaire and e-mail it to our Customer Service department at nl.maco.customer@sgs.com. You will receive a reply from our expert as soon as possible. If you have any questions, our VAT expert will be happy to answer them.
Fiscal representation SGS Maco example
A load of e-scooters arrives from China by train via the Silk Road in Duisburg (Germany). If these goods are customs cleared in Duisburg, a significant amount of VAT must be paid, because of the high value of the e-scooters. The paid VAT can be refunded, but the importer cannot spend this money for a certain period of time. This is because Germany does not have a reverse charge system when importing goods, which results in a liquidity loss / cashflow disadvantage of 19% over the value of the goods.
This problem can be avoided when the e-scooters are customs cleared in Venlo. The Netherlands is authorised to apply the reverse charge mechanism, according to article 23 of the Dutch VAT law. When the goods are customs cleared in Venlo there is no need to pay VAT if SGS acts as a fiscal representative. In this case, SGS will be responsible and liable for the VAT on the importation and subsequent intra-community zero-tariff transaction. Following the declaration, e-scooters are free to be transported to Germany without customs intervention.
By clearing the goods with limited fiscal representation in Venlo, the importer creates a large liquidity advantage for himself. With the high value and volume of certain shipments, this can quickly add up to millions of euros. The liquidity benefits by far outweigh the cost of driving to Venlo, which is close to the German border. The location of our Venlo office also allows us to provide the physical inspections by customs, because the customs office is only a few minutes away from our office.
