Optimize your import and warehousing logistics in the Netherlands

The Netherlands continues to be a strategic gateway for international trade into Europe. Its advanced infrastructure, proximity to major ports, and favorable customs and tax regimes make it an ideal location for international sellers.

Three key mechanisms contribute to this advantage: the Dutch VAT reverse charge mechanism, Dutch fiscal representation, and bonded customs warehousing in the Netherlands.

 

1. Dutch VAT reverse charge mechanism on import: improve your cash flow

To support its role as a European distribution hub, the Netherlands offers a reverse charge mechanism for import VAT. This system allows businesses to defer the payment of import VAT until their periodic VAT return, rather than paying it upfront at customs.

How it works:

• Import VAT is declared in the periodic VAT return.
• It is simultaneously reclaimed in the same return.
• As a result, no actual VAT payment is due at the time of import.

Eligibility:

• Dutch-resident companies.
• Foreign companies with a permanent establishment in the Netherlands.
• Foreign companies without a permanent establishment can appoint a fiscal representative to benefit from this mechanism.

2. Fiscal representation in the Netherlands: simplify your VAT compliance

Foreign companies importing goods into the Netherlands can benefit from fiscal representation, which allows them to comply with Dutch VAT regulations without establishing a local entity.

There are two types of fiscal representation:

a.      General fiscal representation in the Netherlands (GFR)

• Suitable for companies with broader activities in the Netherlands or EU.
• Requires the foreign company to have its own Dutch VAT number.
• The representative handles all VAT-related matters, including filing and payments.
• Enables full access to the Article 23 VAT deferment license.

b.      Limited fiscal representation in the Netherlands (LFR)

• Ideal for companies involved in intra-EU trade.
• Covers specific transactions such as imports and onward deliveries.
• More cost-effective and focused on compliance for limited activities.

Fiscal representatives can be logistics providers, tax advisors, or specialized intermediaries. They ensure smooth operations and full compliance with Dutch tax laws.

3. Bonded customs warehousing in the Netherlands

A bonded warehouse (customs warehouse) in the Netherlands allows goods to be stored without immediate payment of import duties and VAT. This setup offers several strategic advantages:

• Duty and VAT deferment until goods are released for domestic/EU use.
• Re-export without incurring import duties, ideal for transshipment and global distribution.
• Value-added services such as labeling, packaging, and quality checks can be performed while goods are in storage.
• Enhances cash flow, working capital expenditure and operational flexibility, especially for companies managing large and/or high value inventories or seasonal products.

Bonded warehousing in the Netherlands is particularly beneficial for businesses operating across multiple global markets and looking to optimize their supply chain costs.

Why choose the Netherlands for warehousing and fulfilment?

By leveraging these mechanisms, VAT deferral, fiscal representation, and bonded warehousing companies can:

• Reduce upfront tax payments.
• Simplify administrative processes.
• Improve cash flow and liquidity.
• Gain a competitive edge in European warehousing and logistics.

Whether you're a global brand or a growing e-commerce business, the Netherlands offers the tools and infrastructure to grow and scale your European business efficiently.