The so-called “Article 23 VAT Deferment License” allows foreign importers to avoid paying import VAT when introducing goods into the Netherlands.

This special license requires that the foreign importer (from a EU or Non-EU country) appoints a Fiscal Representative established in the Netherlands that will set up a special bank guarantee with the Dutch Tax Office. Before the new regulation, the amount of the financial guarantee was a percentage of the annual turnover of the importations which could easily reach millions of Euros.

A recent VAT Decree has significantly reduced the amount of the current bank guarantee to a maximum of €100,000 (for non-consumer goods) and €500,000 for consumer goods. The minimum amount of guarantee for the both is €5,000.

Overseas businesses with existing bank guarantees should be able to apply for a reduction in their amounts to the Dutch Tax Office.

Source: Ministry of Finance’s Decree, 15 December 2013, nr. BLKB/2013/2291M