Fiscal Representation, Intra-Communitary Transactions and the VAT for Non-Dutch companies that are located inside the EU

Transcription

1 Fiscal Representation, Intra-Communitary Transactions and the VAT for Non-Dutch companies that are located inside the EU

2 Limited Fiscal Representation and the VAT page 1 Fiscal Representation, Intra Communitary Transactions and VAT. Introduction Hellmann Worldwide Logistics can act as Limited Fiscal Representative. This enables non-dutch companies as yourself to import goods via the Netherlands into the European Union. When importing in the EU, 2 obligations will arise: 1. a levy of import duties (and possible other levies as agricultural levies, antidumping levies, ecise duties, etc.) 2. a VAT-levy. Import Duties Import duties and possible other levies should be paid by importing of goods immediately to Customs. In general, all levies and duties are about the same in the whole European Union so there will be no difference between importing in the Netherlands and, for eample, Germany. The one who will declare the import of the goods, the forwarder or the Customs agent, will have to pay immediately the levies as per the Customs surety-bond and further charge to his customer. VAT The VAT however, varies per EU-country and also, there are different rules and regulations per EU-country, as well as different possibilities to handle VAT. In principle the VAT will be paid by consumers, the final user. Before there is the final transaction of sales to a consumer, the product has been part of many transactions, though. During all these transactions before the buying moment of the consumer, VAT has to be declared and settled. When an entrepreneur as buyer of a product or service pays VAT, he can and will settle the VAT at the moment he delivers to his customer. Every entrepreneur can (and will) settle the VAT till the moment the final consumer, who cannot do this, definitively and actually pays the VAT. Because the VAT differs per country, the member governements of the European Union agreed that with sales between companies of where the goods will be transported from one EU-country to another, the transaction will be dutiable with 0% VAT and the buying company will further declare VAT themselves at the Customs of his own country as per a so-called Intracommunity Acquisition declaration. As one of the few EU-countries, the Netherlands have an Article 23 diversion rule. With this regulation it is possible to deduct the epected VAT upon selling, as per a so-called pre-taation, from the VAT upon import at the moment of importing. As the company that is importing goods will sell the goods eventually, it will make a declaration for restitution of the VAT anyway. By Article 23 there is no necessity to really pay the VAT and therefore creates a cash-flow benefit for the period between the actual import-transaction and the submission of the VAT return.

3 Limited Fiscal Representation and the VAT page 2 A fiscal representative with an Article 23 licence is able to handle this pre-taation in behalf of the foreign company it represents. Risk A limited fiscal representative can be held fully responsible for the VAT as well as the Import Duties to be paid and has to carefully carry out both obligations to secure proper follow up of all regulations by law that are applicable for, for instance, a transaction with 0% VAT levy. Because of this liability, Datema Hellmann Worldwide Logistics reserve the right to set limitations to deliveries made within the scope of its Fiscal Representation. Set up and Limitations: Power of attorney: Before Datema Hellmann Worldwide Logistics will act as a Limited Foscal Representative, the to be represented company will have to sign a Power of Attorney, that is enclosed within this document as Enclosure C. (Of the first two options, the second one should be ticked, as well as the third bo.) Onforwarding the shipment that was imported under Limited Fiscal Representation Basically, there are three main scenario s for the onforwarding of the imported goods. A. They can be delivered at the site of the company that was fiscally represented by DHWL, when this company is located in a EU-member state other than the Netherlands. B. The can be delivered to the customer of the company that was fiscally represented by DHWL, when this customer is located in the EU. (including the Netherlands) C. The goods are sold by you EWorks our warehouse. Your customer will arrange transportation from our warehouse to another member state. Consignee and Invoice approval: When the delivery has to be made to your customer, we will have to defer the VAT to that company. In order for us to do so, we will have to check their VAT number. This has to be done for every single shipment, even when the check turned out positive for an earlier shipment. As the declaration of the VAT will be based on your selling value to that particular customer, we require the invoice for that delivery. On that invoice it should be mentioned that the delivery will be made from the warehouse of your Limited Fiscal Representative together with our company name and our VAT number that was used for the import. Depending on the actual shipment there might be a need to state other information on your invoice as well. These specific instructions will be eplained on the net pages.

4 Limited Fiscal Representation and the VAT page 3 We also have to make sure that your customer will actually declare their acquisition and the resulting VAT to their authorities. Before shipping out, we will send them a letter stating to do so. An eample of this letter can be found as Enclosure A. Proof of delivery: In order for us to prove the proper use of a 0 % VAT levy on any delivery from the stock of the company that we fiscally represent, we have to keep records of the actual delivery to the customer outside the Netherlands. A signed CMR is the document to do so with. As not all European transportation companies enables the return of signed CMR s, this burden of proof can cause the need for alternative and specialized transportation set ups for making deliveries to your customer. When the transportation is arranged by the final consignee, the driver of the truck or transportation vehicle will be required to sign a statement. An eample of this statement can be found as Enclosure B. We will have to verify their VAT number and we do require a copy of your invoice to your customer. Please make sure that this procedure is known to your customer as soon as you agree to them picking up the goods at our warehouse themselves. The countries where deliveries can be made, using 0 % VAT: For deliveries to the following memberstates of the European Union the 0 % VAT rule can be applied. These countries are: - Austria - Belgium - Czech Republic - Denmark - Finland - France - Germany - Greece - Ireland - Italy - Luembourg - Portugal - Spain - Sweden - The United Kingdom (including Northern Ireland) - The Netherlands For deliveries to Poland, Hungary, Slovakia, Slovenia, Estonia, Latvia, Lithuania, Malta and Cyprus, we will not allow Intra Communitary transactions to be made to these countries, using our VAT number with Fiscal Representation, until further notice. Countries that are not part of the European Union, but are located in Western Europe are Norway and Switzerland.

5 Limited Fiscal Representation and the VAT page 4 Specific Instructions: Deliveries to your customers in the Netherlands: For deliveries made to your customers in the Netherlands, the following statement should be made on your invoice to that consignee: This shipment is delivered through our Fiscal Representative Datema Hellmann Worldwide Logistics (VAT ID-nr.: NL B02*), using the diversion-rule art. 12(3) Wet O.B You have to take care of the VAT-declaration yourself. In Dutch: Deze levering geschiedt via onze fiscaal vertegenwoordiger Datema Hellmann Worldwide Logistics (VAT ID-nr.: NL B02*), met gebruikmaking van de verleggingsregeling art. 12(3) Wet O.B U dient zelf voor de BTW-aangifte zorg te dragen. * Note: depending on the mode of transport that was used to import the goods into the EU, the actual VAT number can vary: Original Imports into the EU by Oceanfreight: NL B 02 Original Imports into the EU by Airfreight: NL B 02 Deliveries to your customers in same EU country as where your company is located: For deliveries made to your customers in the same country as where your own company is located, it is often believed that normal local VAT should always be charged on the selling invoice. This is not true. As the good are physically delivered from the Netherlands to the other EU country it is most certainly considered to be a Intra Communitary Transaction and it is possible to charge 0 % VAT. The following statement should be made on your invoice to that consignee: This shipment is delivered through our Fiscal Representative Datema Hellmann Worldwide Logistics (VAT ID-nr.: NL B02*), You will have to declare this purchase for VAT yourself. * Note: depending on the mode of transport that was used to import the goods into the EU, the actual VAT number can vary: Original Imports into the EU by Oceanfreight: NL B 02 Original Imports into the EU by Airfreight: NL B 02

6 Limited Fiscal Representation and the VAT page 5 Instructions for deliveries to your customers in other EU Countries: For deliveries made to your customers to other countries in the EU, the following statement should be made on your invoice to that consignee: This shipment is delivered through our Fiscal Representative Datema Hellmann Worldwide Logistics (VAT ID-nr.: NL B02*), You will have to declare this purchase for VAT yourself. * Note: depending on the mode of transport that was used to import the goods into the EU, the actual VAT number can vary: Original Imports into the EU by Oceanfreight: NL B 02 Original Imports into the EU by Airfreight: NL B 02 NOTE : The use of 0 % VAT as part of a Intra Communitary transaction for goods that have been imported with Fiscal Representation using our Article 23 VAT number is limited only to direct deliveries to the party that is mentioned on the invoice. Variations such as ABC transactions a.o. are only allowed after specific approval prior to the delivery. We reserve the right to decline the use of 0 % VAT as part of a Intra Communitary transaction for goods that have been imported with Fiscal Representation using our Article 23 VAT number for every individual delivery where above instructions are not fully met. The Dutch Forwarding and Logistics Conditions in the latest version by FENEX at the Registry of the District Courts at Amsterdam, Arnhem, Breda and Rotterdam, shall apply. The conditions will be sent to you on request. Chamber of Commerce, Haarlem Number and Rotterdam, Number K.

7 Limited Fiscal Representation and the VAT page 6 Enclosure A: Letter to consignee s that are not the importer of the goods. Dear Sirs, Re.: Declaration of V.A.T. As we acted as a V.A.T. representative in the Netherlands for the clearance of the below mentioned shipment in the Common Market, we would like you to pay attention to the following procedure: A) You should declare the V.A.T. in your country by using our V.A.T. identification number: NL B 02 / NL B 02 B) Furthermore, you should declare the goods on your Intrastat declaration. C) Kindly return a copy of this letter signed by you for receipt of the shipment and the confirmation of the declaration of the V.A.T. The details of the shipment are as followss: - Supplier : - Order number : - Invoice number : - Number of packages : - Tariff codenumber : - Nettweight : We thank you in advance for your co-operation. Yours faithfully, Datema Hellmann Worldwide Logistics B.V. We herewith confirm that we received above shipment and that we will make / made a proper V.A.T. declaration. Date :... Stamp and Signature :

8 Limited Fiscal Representation and the VAT page 7 Enclosure B: Verklaring als bedoeld in onderdeel 4.3 van Mededeling 38. Statement as described in Notification 38, article 4.3 Ondergetekende... Undersigned VERKLAART (voor zoveel nodig. namens de afnemer): States ( as necessary, on behalf of the buyer) (naam van degene die de goederen in ontvangst neemt) (name of the receiver of the goods) 1. dat de goederen die zijn vermeld op de door de leverancier: that the goods from the following supplier: Naam:... Name: (naam leverancier) (name of the supplier) Adres / Plaats:... Address / City (bedrijfsadres leverancier) (company address of the supplier) afgegeven factuur met nummer:... d.d.... represented on the invoice with number: (factuurnummer) (factuurdatum) (Invoice number) (Invoice date) en die zijn geleverd aan:... sold to: (naam van de buitenlandse afnemer) (name of the foreign buyer) met het BTW-identificatienummer :... with the VAT identification number: (buitenlandse BTW-identificatienummer van de afnemer) (Foreign VAT number of the Buyer) met een vervoermiddel met het kenteken:... with a transportvehicle, with license-plate nr: (indien van toepassing: kenteken vermelden) (when applicable, the license plate of the vehicle) zijn / zullen worden vervoerd naar:... are or will be transported to: (plaats van bestemming) (City of destination) in de Lid-staat:... in the EU-member state: (Lid-Staat van bestemming) (EU-Country of destination) 2. dat de afnemer bereid is op verzoek van de Nederlandse Belastingdienst nadere informatie te verstrekken omtrent de bestemming van de goederen. that the buying company is willing to further inform the Dutch ta authorities, upon their request, about the destination of the goods (plaats) (City) (datum) (date)... (handtekening van degene die de doederen in ontvangst neemt) (Signature of the person who will take possessiom of the goods)

9 Limited Fiscal Representation and the VAT page 8 Enclosure C Power of Attorney (Dutch) Hellmann Worldwide Logistics, the Netherlands Shannonweg 11, 3197 LG Rotterdam Rotterdam, The Netherlands

10 Limited Fiscal Representation and the VAT page 9 Enclosure C Power of Attorney (English) Hellmann Worldwide Logistics, the Netherlands Shannonweg 11, 3197 LG Rotterdam Rotterdam, The Netherlands

11 Limited Fiscal Representation and the VAT page 10 Enclosure C Power of Attorney (French) Hellmann Worldwide Logistics, the Netherlands Shannonweg 11, 3197 LG Rotterdam Rotterdam, The Netherlands

12 Limited Fiscal Representation and the VAT page 11 Enclosure C Power of Attorney (German) Hellmann Worldwide Logistics, the Netherlands Shannonweg 11, 3197 LG Rotterdam Rotterdam, The Netherlands