VAT registration in Netherlands

VAT registration in Netherlands

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Hi, I have a client who is working for a UK company and invoices for their services to this company (inc VAT) as normal. However, some of their work is undertaken in the Netherlands. They are entitled to reclaim all expenses incurred re travel/accommodation etc on these trips however, their customer has requested that my client invoice their Dutch subsidiary directly for the expenses (not the main work undertaken). Do they therefore have to register for Dutch VAT in respect of these invoices? Any help much appreciated... Many thanks

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By spidersong
05th Aug 2013 11:16

Well the question is are they making a supply in the Netherlands

...and you haven't told us enough to know.

What are they doing over there? What are they doing over here indeed.

Who is benefiting from their services UK or NL or both, who do they have contracts with UK or NL or both?

With international services and place of supply rules detail is king, and "my client is working for someone" doesn't really give us much to go on.

My initial impression from whats said is that there's no need to register in NL as there's probably no supply there, but as I say there's no real way of telling from the above.

Just sending an invoice to a different country doesn't create a need to register in that country, there's only a need to register if the services you've provided are deemed to take place in that country and breach the registration limit for that country (can't remember Hollands off the top of my head). [Of course there's also a need if you're supplying goods on their own and breach distance selling thresholds, but that's not relevant to this query]

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By shaun king
05th Aug 2013 17:05

At a guess

The Dutch company is hoping that by your client invoicing them they can recover the Dutch VAT, which they can't for two reasons 1. there is no supply to them by your client and 2. your client cannot register (unless he is involved in land related supplies) in the Netherlands because he does not have a business establishment there and there is no registration limit in the Netherlands only the requirement to make taxable supplies in course or furtherance of business.

So he can invoice the Dutch ultimate customer but the charge will be a tax inclusive amount and would have to be treated by them as third party consideration. 

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