What is an Article 23 license?
Reverse-charge mechanism on import: Article 23 The Netherlands is the only country in the European Union (EU) with a favourable import tax facility, called article 23 license VAT. This license enables importers to avoid immediate payment of VAT upon importation (VAT deferral).
What is Article 23 in the Netherlands?
The reverse-charge mechanism on import means that you are not required to pay the VAT on import immediately. The VAT can then be paid when you file your VAT return. In order to do this, you will need an Article 23 permit.
What is Article 23 VAT deferment?
NETHERLANDS: ARTICLE 23 VAT DEFERMENT LICENSE The authorization enables to avoid paying VAT at the moment when the goods imported are cleared for customs by a freight forwarder or a customs broker. The import VAT amount will be reverse-charged on a subsequent tax return, resulting in a nil payment of the tax.
How do I register for VAT in the Netherlands?
To file a VAT return in the Netherlands, you must be registered with the International Office (Kantoor Buitenland) of the Dutch Tax and Customs Administration. You will then receive tax return forms periodically on which you can deduct the VAT you have paid.
What do you have to declare at customs in the Netherlands?
You are allowed to bring in duty free: products you purchased on your trip outside of the EU; if the total value is €430 or less. 1 litre of spirits, whisky for example, or 2 litres of wine or 16 litres of beer. 200 cigarettes or 250 gram hand-rolling tobacco or 50 cigars.
What is import VAT rate?
What is the rate of import VAT? The VAT rate you’re charged on imported goods depends on whether your business is VAT registered. If your business is registered for VAT in the UK, you’ll pay VAT at the same rate that would typically apply when you purchase goods from within the UK – normally 20%.
Can I charge VAT to a non VAT registered company?
You must not charge VAT if your business is not registered for VAT. However, VAT registered businesses must charge VAT on their taxable supplies of goods and services and can reclaim the VAT they have paid that relates to the supplies on which they have charged VAT.
How do individuals register for VAT?
Follow these easy steps:
- Logon to www.sars.gov.za.
- Go to the Organizations main menu.
- Click SARS Registered details on the side menu.
- Select Notice of Registration.
- Select VAT. To access this page in different languages click on the links below: Table of Contents. Follow the easy steps below to register for VAT on eFiling:
What happens if you declare more than 10000 euros?
If you’re carrying currency equivalent to $10,000 or more, you have to report the money to customs. That limit isn’t per person if you’re with your family or another organized group, either. If you’re traveling together with two other people and you’re each carrying $5,000, that totals $15,000.
What are you not allowed to bring through customs?
Prohibited means the item is forbidden by law to enter the United States. Examples of prohibited items are dangerous toys, cars that don’t protect their occupants in a crash, bush meat, or illegal substances like absinthe and Rohypnol.
Can you avoid import tax?
You may be able to pay no Customs Duty or a reduced amount of duty for goods you bring or receive into the UK, depending on what they are and what you do with them.
How do I calculate import VAT?
Many people make the mistake of thinking that the VAT will be calculated only on the cost of the goods but this is wrong; VAT is calculated based upon the TOTAL cost of shipping the goods to the UK and is usually made up of the cost of the goods from the supplier together with the cost of shipping and duty.
Why do I need an article 23 licence in the Netherlands?
It’s one of several factors that makes the Netherlands such an attractive import destination. By default, importers are required to pay applicable import VAT and duties when goods pass through customs. Dutch regulations provide traders with an opportunity to defer the VAT. However, in order to defer your import VAT, you need an Article 23 licence.
What is the general Article 23 license?
This licence gives the importer the right to defer the VAT payments. Under the General Article 23 license, the importer must register for VAT in his own name and adhere to all the usual VAT compliance and reporting requirements in the Netherlands.
What is Article 23 of the Dutch VAT code?
In practice, that means that Article 23 enables you to account for both your input and output VAT on your VAT return. That is, your ‘payment’ and ‘reclaim’ occur concurrently. Generally speaking, you must be VAT registered in the Netherlands to take advantage of import VAT deferment.
Do I need an article 23 licence to defer import VAT?
However, in order to defer your import VAT, you need an Article 23 licence. Note, however, that non-resident businesses cannot apply for the Article 23 license directly. They must appoint a fiscal representative. Generally speaking, the import VAT paid at the border can be reclaimed.