What is the Article 23 Import License in the Netherlands?

Overview

The Article 23 license (also known as "Artikel 23 vergunning") is a special import VAT deferment license in the Netherlands that allows businesses to use the reverse charge mechanism for import VAT. Taxually can assist you in obtaining the license so you can benefit from the administrative and financial advantages that come with the license.

Purpose and Benefits

The Article 23 license offers several key benefits:

1. Cash Flow Advantage: Instead of paying import VAT at customs and later reclaiming it through a VAT return, businesses can defer payment and immediately deduct it in the same VAT return. The process works as follows:

• When goods are imported, the customs declaration references the Article 23 license number

• Instead of paying import VAT directly to customs, the amount is deferred

• The deferred import VAT is reported in the periodic VAT return

• The net effect is typically zero VAT payment (assuming full VAT recovery rights)

1. Administrative Efficiency: Reduces paperwork and administrative burden associated with VAT payments and reclaims.

2. Simplified Customs Clearance: Often results in faster customs clearance procedures.

Eligibility Requirements

To qualify for an Article 23 license, a business must:

• Be registered for VAT in the Netherlands

• File regular VAT returns in the Netherlands (monthly or quarterly)

• Have a good compliance history with the Dutch Tax Administration (newly registered companies can also apply)

• Import goods into the Netherlands on a regular basis

• Meet certain administrative requirements for record-keeping (e.g. maintaining import declarations, freight documentation, proof of value, and systematic VAT accounting records)

Foreign (both EU and non-EU established) companies can also apply if they have a Dutch VAT registration number and file Dutch VAT returns. However, these companies must appoint a general fiscal representative in the Netherlands to utilize the license. Taxually can assist with this requirement, subject to a separate service fee.

Application Process

1. Submit Application: Apply to the Dutch Tax Administration (Belastingdienst) using form "Verzoek artikel 23-vergunning" (Request for Article 23 License).

2. Documentation:

The following documents are required:

• Estimated realistic turnover for the current year

• Description of imported goods along with commodity code(s)

• Brief business activity description

• Power of Attorney (wet signed)

Note: Before sending any documents to Taxually, please contact us first at [email protected] for guidance and to address any questions.

3. Processing Time: Applications are typically processed within 8-12 weeks.

4. Deposit Payment: Companies that are willing to use this scheme are required to pay a one-off deposit which is determined on the basis of their (estimated) import volumes, with the minimum of EUR 5,000.

5. Notification: When approved, the Tax Authority will issue an official license number.

If you are interested in this service, you can book a call or create a ticket and our team will be able to kick off the process! please let us know by sending a message to [email protected] or through chat.

This document is for informational purposes only and does not constitute tax or legal advice. Requirements and procedures may change over time. Always consult with tax professionals and relevant authorities for the most current information.