Fiscal Representation

Fiscal Representation

Both an integrated European market and a single currency, the Euro, have made it easier for foreign companies to enter the European market and act as a European company. Should you need any help entering the European market when it comes to fiscal matters, Freightways’ fiscal representation offers a solution.

Freightways Fiscal Representation specializes in all the bureaucratic aspects required for your international supply chain flow. We represent foreign companies for both fiscal (VAT) and Customs requirements.  

As a foreign entrepreneur exporting goods to the European Union, it is required that you have a European VAT-number or that you import the goods under the VAT number of your representative. This is dependent on the form of fiscal representation you choose to use. 

 For both types of fiscal representation a license is needed as well as a customer’s statement officially appointing the fiscal representative. Freightways will of course be able to assist you with this should you need it. 

Fiscal Represenation

Fiscal Representation “limited and general”

Under both types of fiscal representation Freightways takes care of the import of your wares and the VAT declaration. There are two major differences between general and limited representation: 

Under limited representation you are ONLY able to sell B2B and your goods will be imported using Freightways’ VAT number. 

Under general represenation you are able to sell both B2B and B2C and Freightways will request a Dutch VAT number of your own. 

Article 23

As your representative we can request an Article 23 with the Dutch Tax Services on your behalf. This means you are not required to pay VAT immediately upon import. The Netherlands is one of only few countries where this construction exists. 

Bonded warehousing

Fiscal Representation

 Freightways offers bonded warehousing made available through a special license we have with Customs. Using this license, we are able to delay payment of import tariffs until goods are shipped to your customer. So you only pay duties when you know your product has a buyer. 

In the meanwhile, your goods will be stored in our warehouse as “bonded stock”. It can hold this status indefinitely. If your customer is located outside of the European Union, the goods can be transported under Customs bond (T1). This means duties are only paid in the country of destination and not within the EU, avoiding double payment. 

One Stop Shop

On the first of July 2021 VAT obligations of B2C e-commerce sellers will be drastically reformed in order to battle fraud and boost cross-border online sales. Three major changes will be introduced:

          Some e-commerce sellers will be able to report all their pan-EU distance sales on a single VAT return in their home country instead of having multiple VAT registrations across the EU.

          The VAT exemption for small parcels valued under €22 will be removed.

          Online marketplaces will become deemed suppliers when they facilitate certain B2C cross-border transactions of their third party sellers. They will then be responsible to collect, report and remit the VAT due from the customer.  

       Freightways can help you navigate these new VAT obligations as part of their fiscal representation service. More information on the changes in VAT returns can be found here.

For more specific information check Dutch Customs or contact us