Even if you haven’t made any turnover yet, you must file a VAT return in the Netherlands. This will come in a paper form the first year and in a digital format after that. There are several ways to file your VAT return. This article will go over the requirements for filing a return. It will also explain reverse charging and how to invoice if you do business in other EU countries. Here are the most important things to remember.
Reverse charging on services and goods
Reverse charging is a process that allows you to charge the VAT of another country on a service or a product sold to a customer in your own country. It is applicable to B2B transactions between companies registered in different EU Member States. The buyer must charge VAT in their country of registration, but he can also apply for a zero-rate VAT if he sells the goods or service to a consumer in another EU Member State.
To use the reverse-charge regulation, suppliers should issue their customers a VAT invoice. However, private individuals cannot take advantage of this regulation. In such cases, they must charge VAT on the invoice they issue. For example, if a customer has a Dutch VAT identification number, they must provide it in their invoice. The amount of the reverse charged VAT must be included in the VAT submission. If you issue a Dutch VAT invoice to a customer, you should note that the VAT amount will be calculated based on the Netherlands VAT rate.
Invoicing if you do business with other EU countries
Invoicing for VAT is very important when you do business with other EU countries, but there are also specific rules for this. Each member state has different rates of VAT and rules on how to claim it, so you need to set up your invoicing for each country separately. An invoice is an important tool to collect VAT and it can also be used by your customer to claim back VAT if they are VAT registered.
Invoicing is regulated by both the EU VAT Directive and national VAT laws. The VAT Directive sets out straightforward rules for invoicing, but the national rules may vary.
While most B2B and B2C transactions in EU countries require an invoice, some may be exempt, such as the supply of new means of transport or services to non-EU customers. In these cases, you can modify the standard format to meet local requirements.
Reclaiming VAT from non-EU countries
There are several procedures for reclaiming VAT from non-EU countries, which may be confusing for businesses. The first step is to establish a VAT reciprocity agreement with the country where the tax was charged. Then, you must submit your VAT refund claim. The process will vary from country to country, as is the deadline for submitting your claim.
There is also sometimes a requirement to submit documents in the local language, and you may need to seek assistance from a fiscal representative.
The next step in reclaiming VAT from non-EU countries is to calculate how much VAT you paid while you were not registered in that country. You can do this by consulting the tax authorities in the country you’re in and then calculating the VAT you must pay to the Tax & Customs Administration. In addition, keep track of all VAT you’ve charged to your customers and suppliers and report them to the Tax & Customs Administration. Once you’ve calculated the amount you need to claim, you can deduct that tax from your taxable income.
Requirements for filing a VAT return
Despite the fact that it is not mandatory to file a VAT return in the Netherlands, it is still required by law. You are responsible for filling out your tax return and failing to do so will result in an extra assessment. The digital VAT return has an explanation in Dutch and English. The English explanation is specifically for entrepreneurs who are not based in the Netherlands. To file your VAT return, you must pay a fee of EUR 150.
The Netherlands tax authorities will provide you with a form that allows you to claim a VAT refund of 7.8% to 15 percent. However, you must make a minimum purchase of 50 EUR. It is best to use this form when purchasing goods in a Dutch store. Sales associates in a boutique will prepare your VAT refund for you when you pay. Large shopping centers also have specialized VAT service counters for these customers.
What are the VAT rules on international services?
VAT liability depends on the nature of the trade and the country of the trading partner.
It notes a charge and autoliquid the VAT at the rate in force in Belgium.For the French supplier, this is a sale of intra-community services.
The invoice will not include VAT, as this will be paid by the Belgian buyer.
(It is always advisable to check the validity of the intra-community VAT number provided on the VIES system.the mention (not compulsory, but recommended): “Reverse charge by the lessee” (Art.
283-2 of the CGI or Art.
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