Foreign businesses can either be represented by a general or limited fiscal representative in the Netherlands.
General fiscal representation
A general fiscal representative is a local entity that helps foreign traders to register their company for VAT in their own name. This allows traders to apply for an Article 23 import license, which if granted will mean they avoid paying VAT on the clearance of their goods into the Netherlands. Instead, the import VAT will be postponed to the VAT returns and will be entered in the same way as a reverse charge transaction.
Limited fiscal representation
A limited fiscal representative is a local entity which includes the foreign trader’s transactions in their own VAT reporting, hence there is no requirement for the trader to have a VAT registration in their own name. These types of representatives can only act on behalf of traders who are established outside of the Netherlands and can only be used in certain scenarios. Companies who bring goods into the Netherlands from other EU countries or buy and sell services cannot use this type of representation.