For Chinese companies wanting to sell their products in Europe but not wanting to set up a permanent office there, KLG-ITM offers a service known as fiscal representation.
Fiscal representation is a means of carrying out VAT obligations for companies that are not based in one of the EU countries and specifically not in the country where the liability for the VAT is issued due to import or export issues, or a European company not based in the Netherlands. The possibility of fiscal representation offers non-resident entrepreneurs the same savings in the area of VAT at import as Dutch entrepreneurs.
One off the advantages that a fiscal representation offers is that you do not have to create a permanent establishment for corporate income tax in the Netherlands.
The second advantage is that due to VAT rule art.23 after customs clearance the VAT will not be paid, but re-directed to an administrative transaction, where the VAT will be added and deducted in one application form. This can have a huge positive effect on your cashflow.
The third advantage would be in combination with the use of our bonded warehouse a postponement of paying import duties until the moment of clearance and delivery to your clients. When clients have a non-EU residence even an exemption of paying import duties is possible using an in-bond delivery with a T1 document.
For more information please see the website of KLG Europe.
Reverse charge VAT
KLG is acting as General Tax Representative. The Dutch tax authorities grants us an article 23 reverse-charged VAT authorisation for imports to non-Dutch companies. We use this to represent your business in the Netherlands and are responsible for all transactions and correct VAT payment. You do not require a Dutch office.
The Netherlands offers international companies fiscally advantageous schemes. Interested in learning more? Please feel free to contact us. We'll gladly inform you about the benefits for your business.
We are happy to inform you.