Limited Fiscal Representation
Colvan International Forwarding has the Limited Fiscal Representative license. With this license it is possible to declare goods in the Netherlands for import that have a different destination than The Netherlands within the EU. The goods must be transferred to that Member State of destination immediately after release.
This makes it possible to pay the import duties in the Netherlands and to shift the VAT to the destination country.
VAT does not have to be paid at the time of import. This can provide a liquidity benefit for companies located in EU countries that allow importers to pay the turnover tax due at the time of import.
Example: You own a company in the UK. You import leather men’s shoes with an import duty rate of 8% and a VAT rate of 20%. The customs value is fixed at € 100.000.
You pay € 100.000 x 8% = € 8.000 for import duties and VAT: (€ 100.000 + € 8.000 + domestic transport costs) x 20% = +/- € 22.000 VAT.
In England they do not have a deferment arrangement like the one we have in the Netherlands according to art 23 of the law OB 1968.
Art.23 of the law on Turnover Tax 1968
By using our services to act as a Limited Fiscal Representative, you will in fact receive credit on the VAT to be paid and you will only pay the import duties at the moment of import into the Netherlands. The payment or settlement of the VAT due will then take place via the periodic tax return. You have to take into consideration the extra costs for transfer via Rotterdam or Schiphol and whether that weighs against the liquidity benefit.
Colvan International Forwarding is happy to advise you on the options.
Brexit and customs formalities
Customs documents arranged by Colvan
What will happen on 29 March 2019 and what will change?
On this date, the United Kingdom (UK) – with or without agreement – will be permanently out of the European Union (EU). After this date, customs formalities will in any event be reintroduced regardless of the outcome of the negotiations. This means, for example, that companies will have to make customs declarations in all scenarios when importing or exporting to the UK.
For more information: https://www.hulpbijbrexit.nl/
Colvan International Forwarding takes care of your UK import or export declarations.