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EU VAT for Dutch Importer (Post Brexit Subsidiary)

Which of these transactions can be invoiced from the a Dutch company using NL VAT?

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It's become clear that the only way that we can effectively continue to serve our EU customers post-Brexit is to setup an EU subsidiary for clearing/importing into the EU (acting as EORI/declarer)

Which of these transactions can be invoiced from the a Dutch company using NL VAT? And for any that cannot, which VAT number should be used?

Scenario: Dutch company with VAT registrations in NL, DE and FR imports into EU via Calais, supplying French VAT number to clear customs. Clears customs and then ships to:

  • Consumer in France
  • Business in France
  • Consumer in Germany
  • Business in Germany
  • Consumer in NL
  • Business in NL
  • Consumer in Spain
  • Business in Spain

 

Replies (12)

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By paul.benny
17th Mar 2021 16:27

First question - are you going to be holding stock in an EU member state?

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Replying to paul.benny:
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By whizzergo
17th Mar 2021 16:39

paul.benny wrote:

First question - are you going to be holding stock in an EU member state?

Hi Paul.

No. Everything is custom made in the UK.

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Jason Croke
By Jason Croke
17th Mar 2021 16:49

Place of supply for VAT is where the goods are at time you acquire or sell them. If all goods are coming into Calais, then you are going to incur French import VAT (assuming you will use your FR VAT number as importer of record)

Logic would suggest that all sales/output tax are then recorded on your French VAT return because the movement of goods will be from Calais... to NL or DE or ES.

As the goods are in France, then EU VAT rules apply in regard B2B or B2C sales.

Why have you got an NL entity when no goods are going through NL? Are you storing goods in NL after they've arrived via Calais? Why have you got a DE registration?

Is the plan that UK "sells" the goods to NL entity (via FR VAT registration) and then NL entity owns the goods and sells from FR/NL to EU B2B and B2C? Why NL entity over say a FR entity?

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Replying to Jason Croke:
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By whizzergo
17th Mar 2021 17:04

Jason Croke wrote:

Place of supply for VAT is where the goods are at time you acquire or sell them. If all goods are coming into Calais, then you are going to incur French import VAT (assuming you will use your FR VAT number as importer of record)

Logic would suggest that all sales/output tax are then recorded on your French VAT return because the movement of goods will be from Calais... to NL or DE or ES.

As the goods are in France, then EU VAT rules apply in regard B2B or B2C sales.

Why have you got an NL entity when no goods are going through NL? Are you storing goods in NL after they've arrived via Calais? Why have you got a DE registration?

Is the plan that UK "sells" the goods to NL entity (via FR VAT registration) and then NL entity owns the goods and sells from FR/NL to EU B2B and B2C? Why NL entity over say a FR entity?

Hi Jason,

Thanks for the detailed reply.

We're going to be using a UPS logistics solution which could see entry points into Europe via France, Germany or Netherlands, depending on the service and destination.

The reason for using an NL entity was the language, ease of doing business and VAT deferment options.
It seems vastly easier from an admin perspective to 'recharge' everything from the UK firm through a single EU entity rather than trying to dynamically invoice with the different VAT numbers dependent on entry point.

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Replying to whizzergo:
Jason Croke
By Jason Croke
18th Mar 2021 09:35

The point of entry determines which VAT rules are in play. If you import goods into DE, you reclaim the DE import VAT and you make a sale from DE, so sales go on DE VAT return, same again for goods entering via FR or NL.

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Replying to Jason Croke:
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By whizzergo
22nd Mar 2021 09:30

Jason Croke wrote:

The point of entry determines which VAT rules are in play. If you import goods into DE, you reclaim the DE import VAT and you make a sale from DE, so sales go on DE VAT return, same again for goods entering via FR or NL.

Thanks Jason.

I've tried to mail you directly to continue the conversation.

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By paul.benny
17th Mar 2021 17:08

It might be worth your while seeking some more personal advice from someone like Jason. (I have no connection with him and am only aware of him through this forum).

You don't specify your product. Have you considered whether there are any options for holding some part-completed product in an EU member state and carrying out final production there. That might change the dynamic - although clearly there is a cost.

(edit- post crossed with your reply to Jason, but the points stand)

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Replying to paul.benny:
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By whizzergo
17th Mar 2021 18:00

paul.benny wrote:

It might be worth your while seeking some more personal advice from someone like Jason. (I have no connection with him and am only aware of him through this forum).

You don't specify your product. Have you considered whether there are any options for holding some part-completed product in an EU member state and carrying out final production there. That might change the dynamic - although clearly there is a cost.

(edit- post crossed with your reply to Jason, but the points stand)

It would be dramatically more complicated to hold stock in the EU, given the nature of our business. It'd basically be a pack-up and move sort of job, and the ramifications of that are enormous.

At this stage we really need to find the most effective means of clearing customs in advance and simplifying things for our customers.
DAP is an alternative but the cost per consignment is substantially more than the route we're trying to go down as described above.

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Replying to whizzergo:
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By paul.benny
18th Mar 2021 07:05

whizzergo wrote:
At this stage we really need to find the most effective means of clearing customs in advance and simplifying things for our customers.

Which is why you need some bespoke advice from a VAT specialist who can discuss the specifics of your business..

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Replying to paul.benny:
A Putey FACA
By Arthur Putey
18th Mar 2021 09:05

Agreed there are a number of factors here so unless you are prepared to discuss the specifics it is worth speaking to someone directly. One option might be to export the goods to a single location e.g. NL where they clear customs and are delivered onwards from there. A variation on that would be for the UK co to sell to the NL co and the customers buy from there. But that would make the NL company a trading company and liable to NL tax, so you need to consider more than just VAT and distribution costs when looking at options.

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Replying to Arthur Putey:
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By whizzergo
22nd Mar 2021 09:23

Arthur Putey wrote:

Agreed there are a number of factors here so unless you are prepared to discuss the specifics it is worth speaking to someone directly. One option might be to export the goods to a single location e.g. NL where they clear customs and are delivered onwards from there. A variation on that would be for the UK co to sell to the NL co and the customers buy from there. But that would make the NL company a trading company and liable to NL tax, so you need to consider more than just VAT and distribution costs when looking at options.

Sorry, my original post could have been clearer on this.

The plan is indeed for the UK co to sell to NL co. NL co then imports and sells onward across the EU.
The point of importation is most commonly France, as that's naturally the closest border and where UPS take the goods via.

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Replying to paul.benny:
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By whizzergo
22nd Mar 2021 10:12

paul.benny wrote:

whizzergo wrote: At this stage we really need to find the most effective means of clearing customs in advance and simplifying things for our customers.

Which is why you need some bespoke advice from a VAT specialist who can discuss the specifics of your business..

Absolutely. If anyone can offer such advice then please leave an email address here and i'll be in touch.

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