When it comes to VAT
VAT is also due when importing goods. In order to be able to properly determine the VAT on import, a clear link has been established between VAT legislation and customs legislation. This link ensures, for example, that it can be determined where, when and on what value VAT is due on import. In short, VAT law follows customs law.
However, differences may occur as a result of which the link between VAT legislation and customs legislation no longer exists. This is particularly the case for the question of where (in which Member State) VAT is due on import. This is not always the same as where the customs debt arises. This difference may occur in situations where a customs procedure is not cleared or a customs procedure is not properly carried out.
If irregularities have occurred or, for example, a customs procedure is not cleared, the customs debt is incurred in the Member State where the goods are placed under the customs procedure. The Court of Justice has now established several times that in such a situation VAT may be due on import into another Member State. The Court of Justice recently reaffirmed this.
For example, if goods are placed under a customs procedure in the Netherlands and this procedure is not cleared (in a timely manner), the customs debt arises in the Netherlands. The stakeholder in this case will also receive a VAT assessment for that import into the Netherlands. Following the Court of Justice, this is not always correct, especially in the case that the goods have actually been brought to another Member State (Germany). In such a situation, the customs debt arises in the Netherlands, but the VAT debt arises in Germany. If this stakeholder is a German entrepreneur, there is no need to start proceedings against the VAT debt in the Netherlands, a VAT registration in the Netherlands is not required to report the import, to reclaim the VAT on import and to report the transfer of the goods to Germany. It is our experience that a VAT assessment is still imposed in these types of situations in the Netherlands. It is therefore important not to simply accept the VAT assessment upon import.
If you are faced with such a situation or would like to know more about the options for avoiding VAT on import into the Netherlands, please do not hesitate to contact us.
If you have any questions about this topic or if you would like to discuss the topic further, please do not hesitate to contact us at info@vatpartners.com
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