VAT registration

Sometimes, a foreign entrepreneur carries out all kinds of economic activities in the Netherlands or has them carried out without wanting to be confronted with the provision of bank guarantees, as is the case with general fiscal representation (GFR).

In order to meet the VAT obligations in such a case, the foreign entrepreneur may choose to register only for VAT purposes in the Netherlands. The foreign entrepreneur (whether or not an EU resident) will then be granted a Dutch VAT number. This option is more accessible than GFR, with the disadvantage that VAT has to be prefinanced at import and only later in time can be reclaimed in the own VAT return. However, the advantage of only a VAT registration is that bank guarantees don’t need to be provided and that registration can be completed much faster than a GFR registration.

Applying for a Dutch VAT number

When applying for a Dutch VAT number, several official documents from the  applicant’s country of residence are required. But the VAT number itself is granted quite quickly and can sometimes be done within a few weeks. The VAT number allows the foreign company to participate fully in trade in, from and to the Netherlands. But this also means that they are obliged to keep a VAT administration. It is important to keep in mind that the Dutch Tax authorities will strictly check the correctness of all the transactions, especially if VAT is reclaimed. With only a VAT registration the foreign entrepreneur is solely liable for the VAT activities under their Dutch VAT number.

SGS Maco takes care of these types of VAT registrations and administrations. If interested, you can always contact us, and we will look at the best possible fiscal solution for your company.