Keen readers of our articles may remember that we have previously looked at VAT registration in many EU countries such as Germany and France. These are countries that have extremely strong ecommerce markets and in order for sellers to make the most of the opportunities that these countries represent, VAT registration is an unavoidable step. This is why we’re now taking a look at one of the fastest growing ecommerce markets in Europe. As promised from our previous article which focused on why you should consider expanding your business in to the Netherlands, this article will focus on how to register for VAT in the Netherlands.
Why Should You Register For VAT In The Netherlands?
As this was the main focus of our previous article, we won’t dwell for too long on this topic. Essentially, the reason that the Netherlands is such an attractive prospect for ecommerce sellers is the fact their online economy is one of the fastest growing in Europe and one that is relatively easy to access. Traditionally there has been a hesitation for the domestic consumer-base to shop from foreign sellers, but this is a trend that is no longer applicable.
In addition to this, Amazon is an emerging force in the Netherlands. Surprisingly, Amazon is not completely dominant in the Netherlands as it stands, although this is quickly changing. The majority of sellers on the Dutch version of Amazon are from abroad. That is why now is a great time to register for VAT in the Netherlands, before the market becomes saturated.
When Do You Need To Apply For VAT Registration In The Netherlands?
As with most of the EU countries, the Netherlands have a pretty typical set of rules when it comes to VAT registration for sellers. If you are sellers based in the EU, you will only have to register for VAT in the Netherlands if your sales exceed the sales threshold, which stands at €100,000. However, if you are a seller from elsewhere, such as the UK, you will need to apply for VAT registration in the Netherlands if you hold or sell goods there.
As with other EU countries, please be aware that this also applies to Amazon sellers. This also includes holding goods in a Dutch Amazon FBA warehouse. Essentially, if you are based anywhere outside of the EU, you will have to obtain a Dutch VAT registration number if you hold goods or make taxable sales in the country.
How To Register For VAT In The Netherlands?
As you might expect, the Dutch tax authorities require all the usual relevant information. This will include the VAT certificate of the business, an extract from the company’s national trade register and the Articles of Association. This information should be submitted the Dutch tax office.
UK sellers will be happy to learn that a fiscal representative is not required to complete the VAT registration process in the Netherlands – even after Brexit. However, it is obligatory to appoint a fiscal rep when attempting to use the reverse charge mechanism for the purpose of import into the Netherlands.
VAT Reporting In The Netherlands
Typically, you will have to file VAT returns quarterly in the Netherlands. These returns must be submitted to the Dutch tax office and, in certain circumstances, these must be submitted on a monthly basis. This is only in certain circumstances though, such as if the quarterly VAT payments exceed a certain figure. Of course, it is always best to employ the services of tax professionals when it comes to filing VAT returns. This is where we come in.
Conclusion
Evidently, VAT registration is an unavoidable step when it comes to expanding your business. Whilst it can be a stressful registration process, we are here to complete the process for you.
Our long history of working with ecommerce sellers, especially those who use Amazon and eBay, means we can guide you through every step of the registration process – so please do not hesitate to send us an e-mail at enquiries@jpaccountant.com or contact us through social media to receive a quote today. In addition, we would be more than happy to help you register for UK & EU VAT and file your UK & EU VAT returns, and help you comply with VAT in case your account faces any issues.
