VAT Operate

With an objective to enhance quality and deliver an end-to-end indirect tax compliance services to clients, Deloitte NL has built up a in-house compliance hub in Rotterdam, Netherlands, where a bouquet of experienced professionals work with sectoral experts in managing compliances for our clients. As a closer step towards technological advancement, we started using our in-house compliance solution i.e. Indirect Tax Compliance (ITC) for carrying out the indirect tax compliances across the globe. We support our clients in the following arenas of Indirect taxation:

• Preparation and submission of VAT/, GST, Intrastat, European Listing and other indirect tax compliances
• Assist in handling tax audits and assessments / inspections from the tax authorities.
• Assist in obtaining registrations / de-registrations, respond to query letters/ tax notices, One Stop Shop (OSS) and Import One Stop Shop (IOSS) related compliances.
• Coordinate with other member firms and assist in global indirect tax compliances

Companies registered for VAT in one European Union (EU) member state (e.g. NL) can reclaim VAT incurred in another EU member state (e.g. Germany or France) under the 8th Council Directive 2008/09/EC, subject to fulfillment of conditions. Similarly, the foreign companies that are situated outside the EU can also claim refund of VAT paid within the EU under the
13th Council Directive 86/560/EEC in the EU. Having legal presence in most of the EU member states, Deloitte can support the companies in claiming refund from the tax authorities in timely manner.

• Carryout a diagnostic review and analyse whether the company is legally eligible to claim refund in the EU
• Verify and advice the procedure and documentation (whether right documents are available etc.,) for claiming the refund
• Advice on how to claim refund on certain specific costs (e.g. entertainment expenses, employee cost, motor vehicle expenses etc.,)
• Preparation and filing of refund claims on behalf of the company with the appropriate tax authorities
• Responding to queries of tax authorities and follow up with the authorities in obtaining the refund

Where a foreign entrepreneur outside EU carries out supplies and services in the NL, for which he is liable for tax in the NL, he would be required to appoint a Fiscal representative in NL. The Fiscal representative acts on behalf of foreign entrepreneur and carries out all rights and obligations, like filing VAT / European Listing declarations, tax payments etc., that foreign entrepreneur has to carryout in the NL. Appointment of fiscal representative is subject to obtainment of VAT registration, executing surety etc., with Dutch tax authorities in NL.

• Co-ordinate with foreign entrepreneur for preparation & filing of the general fiscal representation application with the tax authorities with all the relevant supporting documents
• Discuss with authorities and finalise the amount and the form of security that needs to be executed by the entrepreneur with the authorities
• Follow up with the DTA and obtaining the Fiscal Representation approval
• Assist the entrepreneur in carrying out routine VAT compliances (i.e., VAT returns, EC Sales List, Intrastat declarations) in the NL

In general, where a company imports goods into NL, the import VAT is paid immediately at the time of importation to the Dutch customs authorities. The import VAT paid to the Dutch customs can be claimed as input VAT deduction while filing the VAT returns for the next month on which the import VAT is paid. To avoid the working capital blockages involved in the above process, the Dutch tax authorities have introduced a import VAT deferral license (i.e. Article 23 licenses), by which the companies can claim exemption from payment of import VAT at the time of importation of goods.

• Understand the business plan and import prospects of the company in NL.
• Collate details / documents required for preparing the import VAT deferral scheme application
• Preparation and filing of application with the authorities with relevant documents
• Follow up with DTA in obtaining import VAT deferral license on behalf of the company

Considering the growing business needs of companies and the challenges in finding the right person for the right job at the right time, Deloitte has outlined a business model, where experienced / trained professionals (across all levels) can be will seconded to the client's organisation (via physical presence or remote working) for a specified period of time (for e.g. 3-6 months, which can be extended) to support the client in various Indirect tax matters and other such areas, as instructed by the client.

With effect from 1 January 2022, the Dutch tax authorities have changed their tax filing portal for filing Indirect tax compliances in the NL. As per the new portal, the companies having Chamber of Commerce number in the NL are required to obtain a special login access called eRecognition (“eHerkenning”) login to file their tax returns. For this purpose, the tax authorities have authorized 6 service providers in the NL, who can issue eHerkenning login to representative of the companies.

• Deloitte has been actively supporting various clients during the past 1 year in obtaining the eHerkenning access for filing their tax returns. As a part of work, Deloitte NL does the following:
• Hold discussion with the company’s management and discuss in detail the process / steps involved in obtaining eHerkenning.
• Assist in data collation and submission of the application with the service provider, as may be applicable to the company
• Coordinate with service provider in obtaining the eHerkenning access on behalf of the company