Do we need to register for Dutch VAT?

Dutch VAT

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We are a UK based business who conduct all of our business within the UK, an opportunity has arisen though to do some work in the Netherlands and I need some advice please on the following scenario;
- Our client is based in the US (we trade with them in the UK and provide services and goods within the UK)
- We source packaging for them in the Netherlands for which we are charged Dutch VAT
- This packaging is despatched within the Netherlands to their fulfilment partner
- The team involved thinks that we will then invoice the US based client from the UK for said packaging. 
Would I be correct in assuming that both ourselves and our client need to be registered for Dutch VAT?

Replies (2)

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Ivor Windybottom
By Ivor Windybottom
05th Apr 2024 17:43

(a) Best to speak to your accountant to get some specialist advice.
(b) The place of supply is crucial. If taking possession of goods (packaging) in the Netherlands that is likely to result in a Dutch VAT registration obligation as a supply is likely to arise where the goods start their journey from you to the customer.
(c) You will need Dutch VAT advice and UK accountants will usually need to refer this to Dutch accountants.
(d) Your US client will need to consider the place of supply for their VAT position, but presumably that is their problem? Again, local Dutch VAT advice is required and may indicate a Netherlands registration is required.
(e) I would not rely on an online forum for an understanding of potentially complex international VAT issues. You need paid advice.
(f) As you have already (correctly) identified a risk of needing a Dutch VAT registration you should be getting Dutch aadvice.
(g) The Dutch can usually speak good English, and the Americans are close to being able to communicate in English, too.
(h) Did I mention getting paid Dutch advice? Do that!

Thanks (2)
By Jason Croke
05th Apr 2024 20:31

Based on the little information here, it does sound like both OP and USA need a Dutch VAT number.

For UK, sounds like they buy and own/take possession of packaging in Netherlands and then have that packaging shipped to USA customers fulfilment centre in Netherland, as the goods don't leave The Netherlands then Dutch supplier would charge Dutch VAT.

UK company owns goods in Netherlands, place of supply is where the goods are, goods are in Netherlands, UK company not Netherlands resident, Nil registration threshold.

USA company takes possession of packaging in Netherlands, a "fulfilment partner" suggests USA has stock in Netherlands which is wrapped up in the packaging that it has bought in the Netherlands from the UK company.

All just thoughts and ideas and not advice, as the precise contract details and details of what truly is going on would need to be understood and would reveal the true position, suggest OP speaks with their Accountant and seeks advice from a Dutch advisor too.

Thanks (1)