VAT Reclaim |
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| REFUNDS OF VAT FOR EC AND NON-EC BUSINESSES IN THE NETHERLANDS The office responsible for refunds to foreign traders in The Netherlands is: Belastingdienst Limburg
kantoor Buitenland The above office can only answer questions regarding Netherlands VAT. Any other queries must be directed to the appropriate countries. This notice explains the scheme for Netherlands VAT incurred by traders in The Netherlands if they are established outside The Netherlands. The relevant
law is article 33 of the Netherlands VAT act 1968. The EC legislation
is contained in the Eighth Directive (79/1072/EEC) and the Thirteenth
Directive (86/560/EEC). I. VAT REFUNDS FOR EUROPEAN COMMUNITY TRADERS A. How the
scheme works B. How to
claim VAT in The Netherlands for EC European Community traders II. VAT REFUNDS IN THE NETHERLANDS FOR NON-EUROPEAN COMMUNITY TRADERS 1 What is the scheme
for? I. VAT REFUND FOR EUROPEAN COMMUNITY TRADERS A. How the scheme works 1 What is the scheme
for? You cannot recover VAT paid in another Member State as input tax on your Netherlands VAT return but you may be able to use this scheme to reclaim it. 2 Who can use the scheme? - are not registered, liable or eligible to be registered in the Member State from which you are claiming; and - have no place of business or other residence there; and - do not make any supplies there (other than transport services related to the international carriage of goods, or goods and services where VAT is payable by the person to whom the supply is made). 3 Can I always claim
a refund? - dispatches of goods - but these will be zero-rated, provided the supplier has the necessary evidence; or - goods and services, such as hotel accommodation, you have bought for resale which are for the direct benefit of travellers. You can use the scheme to reclaim VAT on any other supplies used in your business, subject to the normal rules for claiming input tax in that Member State. But: - the rules for claiming input tax are slightly different in eacht Member State; and - each Member State has set a minimum amount that can be refunded. 4 What about VAT paid on imports from outside the EC to a Member State within the EC? If you have to arrange for goods to be imported into another Member State, you can reclaim any VAT due provided there is no other VAT relief available at the import. But you must remember that you will not be able to use the scheme if, as a result of importing the goods, you become liable to register for VAT there. 5 Must I have proof of the VAT I have paid? Yes. You must have correctly completed invoices, vouchers or receipts form your suppliers showing: - a
unique identifying number; If you have imported goods, you must have the VAT copy of the import entry or other customs documents showing the mount of VAT that you have paid. YOU MUST PROVIDE THE ORIGINAL OF ALL INVOICES AND IMPORT DOCUMENTS. COPIES ARE IN PRINCIPLE NOT ACCEPTABLE. 6 When can I claim? 7. Must I make the claim
myself?
When you make your first claim in any Member State, you must also include a certificate from your own tax authority showing that you are registered for VAT there. When you apply for the certificate, make sure you ask for it to show all the information that the authorities will need to process the claim. For example, if the invoices are made out in your company’s trading name, the certificate must show this as well as the name of the person registered. It must an original certificate. A photocopy is not acceptable. You will need a separate certificate for each Member State from which you are claiming. Each certificate is valid for 12 month from its date of issue. This means that it will cover any claims you make in that State during the year. Once the certificate has expired you will need to send a new one with your next claim. Netherlands traders wishing to make a claim in another Member State can obtain a certificate from their local tax office. 9. When will I be paid? Some Member States will make refunds by payable order. If you claim is found to be incorrect after the refund has been paid, any overpayment will be recovered, normally by deducting it from any subsequent refund. 10. Can my claim be refused? B. How to claim VAT in The Netherlands 1. Claim forms You must fill in the form in Dutch (in practise, claim forms completed in English, French or German or also accepted by the tax authorities), using block capitals, and send it back to the address shown in the header. Remember to include your supporting documents and certificate. 2. Non-refundable VAT - food and drinks for on-the-spot consumption in hotels, cafes, restaurants, boarding houses and similar establishments supplied to persons staying only a short time; - goods and services used to maintain a certain status, such as luxuries, amusements or entertainment; - goods or services to be used as business or other gifts to people who would not be able to deduct all or most of the turnover tax on them if it had been charged to them; or - goods
or services to be used to make supplies to your staff of: 3. Minimum claim 4. Method of repayment 5. Using an agent 6. Appeals against rejection of claims If your claim is refused
you have the right to lodge an appeal to the VAT authorities within
six weeks after the decision. In the event of an unfavourable decision
by the tax office, you may appeal within 6 weeks. II. VAT REFUNDS IN THE NETHERLANDS FOR NON-EUROPEAN COMMUNITY TRADERS 1 What is the scheme
for? If you are not registered for VAT in The Netherlands you cannot treat this VAT as input tax, but you may be able to use this scheme to reclaim VAT charged on imports into The Netherlands or purchases of goods and services used in The Netherlands. 2. How can use the scheme? - are not registered, liable or eligible to be registered for VAT in The Netherlands; - have no other place of business or other residence in the EC; and - do not make any supplies in The Netherlands (other than supplies of goods or services where the VAT is payable by the person in The Netherlands to whom the supply is made). It is a condition of the scheme that your own country allows similar concessions to Netherlands in respect of turnover taxes. However, in practise, your claim will not be refused on these grounds. The tax authorities might wish to cancel your claim if it appears that your own country has a scheme for refunding these taxes, but refuses to allow Netherlands traders to use it. 3 Can I always claim
a refund? - dispatches of goods - but these will be zero-rated, provided the supplier has the necessary evidence; or - goods and services, such as hotel accommodation, you have bought for resale which are for the direct benefit of travellers. You can use the scheme to reclaim VAT on any other supplies used in your business, subject to the normal rules for claiming input tax in that Member State.
- the rules for claiming input tax are slightly different in eacht Member State; and - each Member State has set a minimum amount that can be refunded. As well as the supplies listed above, you cannot (or limited under certain conditions) claim VAT on: - food and drinks for on-the-spot consumption in hotels, cafes, restaurants, boarding houses and similar establishments supplied to persons staying only a short time; - goods and services used to maintain a certain status, such as luxuries, amusements or entertainment; - goods or services to be used as business or other gifts to people who would not be able to deduct all or most of the turnover tax on them if it had been charged to them; or - goods
or services to be used to make supplies to your staff of: 4 What about VAT paid on imports from outside the EC to a Member State within the EC? If you have to arrange for goods to be imported into another Member State, you can reclaim any VAT due provided there is no other VAT relief available at the import. But you must remember that you will not be able to use the scheme if, as a result of importing the goods, you become liable to register for VAT there. 5 Must I have proof of the VAT I have paid? Yes. You must have correctly completed invoices, vouchers or receipts form your suppliers showing: - a
unique identifying number; If you have imported goods, you must have the VAT copy of the import entry or other customs documents showing the mount of VAT that you have paid. YOU MUST PROVIDE THE ORIGINAL OF ALL INVOICES AND IMPORT DOCUMENTS. COPIES ARE IN PRINCIPLE NOT ACCEPTABLE. 6 When can I claim? 7 How much can I claim? 8. Must I make the claim
myself? 9. How do I claim? You must fill in the form in Dutch (in practise, claim forms completed in English, French or German or also accepted by the tax authorities), using block capitals, and send it back to the address shown in the header. When you make your first claim you must also include a certificate (if available) from the official authorities in your own country showing that you are registered for business purposes in that country. It must contain: - the
name, address and official stamp of the authorising body; When you apply for the certificate, make sure you ask for it to show all the information that the Netherlands authorities will need to process your claim. For example, if the invoices are made out in your company’s trading style, the certificate must show this as well as the name of the person registered. It must be an original certificate, a photocopy is not acceptable. Each certificate is valid for twelve months from its date of issue and will cover any claims you make during that year. Once the certificate has expired you will need to send a new one with your next claim. (Note: an American certificate, Form 6166, can be obtained from the IRS Certificate Unit in Philadelphia). If you cannot obtain such certificate, you can demonstrate that you are a business with all available means. The authorities also wish you to send along with your first claim a filled out registration questionnaire, a copy of your registration with your local Chamber of Commerce or equivalent body, a copy of your articles of association and any documentation demonstrating your business activities. Remember to include your supporting documents and certificate. 10 When will I be paid? 11 Can my claim be refused?
Mr A.L.J. Hasselman
- to register the company for VAT purposes and sign any and all necessary documents in relation thereto, especially the questionnaire; - to submit and sign regular tax returns and/or applications for rebates, especially VAT claims that fall under the so-called 8th EU Directive (79/1072/EEG)or the13th EU Directive (86/560/EEG); - to receive tax rebates; - to lodge appeals to the tax authorities and/or the courts.
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