As a gateway for foreign traders to enter the EU, the Netherlands not only benefits from the geographical advantages of the Port of Rotterdam on shipping routes, but also because of the implementation of the Dutch government’s Import VAT Deferment License (also known as Article 23 permission). Most goods imported into the Netherlands from outside the EU are subject to VAT. Importers must pay the corresponding duties and VAT at the time of custom clearance. If the goods are imported for commercial purposes, the importer can claim a VAT refund after the goods are sold. However, if the importer declares the import with the permission of Article 23, the payment of the import VAT can be postponed to the regular VAT return, and it can be directly offset after the goods are sold. If the operation of the bonded warehouse is applicable, no cash flow will be generated (called “import VAT deferment” or ” the reverse charge VAT on import ” ).
Source: tgl-group.net
