{"id":102639,"date":"2026-08-03T06:45:19","date_gmt":"2026-08-03T06:45:19","guid":{"rendered":"https:\/\/fiscalrepresentation.londenholland.nl\/?p=102639"},"modified":"2026-08-29T06:22:35","modified_gmt":"2026-08-29T06:22:35","slug":"fiscal-representation-in-the-eu-comprehensive-guide-qa","status":"publish","type":"post","link":"https:\/\/fiscalrepresentation.londenholland.nl\/nl\/fiscal-representation-in-the-eu-comprehensive-guide-qa\/","title":{"rendered":"Fiscal Representation in the EU: Comprehensive Guide & Q&A"},"content":{"rendered":"

What is fiscal representation and when is it required?<\/h2>\n
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Many companies aren\u2019t aware that they should appoint a fiscal representative when trading in the EU or importing goods into the EU.<\/span><\/p>\n<\/blockquote>\n

Fiscal representation is a legal mechanism where a foreign company appoints a local tax representative to handle VAT obligations in a country where the foreign company itself is not established. It is most commonly used for VAT compliance in international trade, particularly when companies import goods into the EU and need support with local tax and customs requirements. The fiscal representative is jointly liable, which gives the tax authorities additional security.<\/span><\/p>\n

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So there is no need to establish a company in the Netherlands?<\/span><\/p>\n<\/blockquote>\n

That is correct. The fiscal representative takes care of all VAT obligations and guides you where needed, for example, by communicating with the Dutch Tax Authorities whenever any questions are raised.<\/span><\/p>\n

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How can companies import goods into the EU without having to pay import VAT upfront?<\/span><\/strong><\/p>\n<\/blockquote>\n

This is made possible by the Article 23 import VAT deferment license, which is connected with the fiscal representation license.<\/span><\/p>\n

Unlike the regular import scheme, with fiscal representation, the import VAT does not have to be paid immediately at the border. Instead, the VAT is deferred and handled through the regular periodic VAT return, where it is both declared and reclaimed at the same time. This results in no immediate cash outflow and a much more efficient import process.<\/span>It\u2019s a common misconception that fiscal representation is only relevant for non-EU companies. In reality, it can be highly relevant for EU-based businesses as well.<\/span><\/p>\n

For example, imagine an Italian company importing steel from South America. The goods are cleared in the Netherlands to take advantage of the import VAT deferment license, and then transported to Italy as a transfer of own goods. In this case, the Dutch fiscal representative handles EC listings, Intrastat, and VAT returns under the Italian company’s local or designated structure. In short: full local VAT compliance without needing a local establishment.<\/span><\/p>\n

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What is the Article 23 VAT deferment license, and what are the main requirements to apply for it?<\/span><\/strong><\/p>\n<\/blockquote>\n

The Article 23 VAT deferment license allows international companies to defer VAT to their periodic VAT return, which avoids an upfront cash payment and can significantly improve a company\u2019s cash flow.<\/span><\/p>\n

To benefit from the Article 23 import VAT deferment license, goods must be imported via the Netherlands. For non-Dutch companies, appointing a fiscal representative unlocks this benefit\u2014allowing you to defer import VAT and avoid upfront payments. It is the optimal option for high-value or frequent importers looking to maximize cash flow.<\/span><\/p>\n

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So who pays the import VAT then? Is there no payment of import VAT at all?<\/span><\/p>\n<\/blockquote>\n

The import VAT is deferred to the periodic VAT return, where it is reported and deducted simultaneously. There is no direct cash flow impact if the company has full deduction rights.<\/span><\/p>\n

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What type of fiscal representation do you provide?<\/span><\/strong><\/p>\n<\/blockquote>\n

We provide General Fiscal Representation \u2014 the model where your business receives its own dedicated Dutch VAT and EORI number, rather than operating under a shared registration. This makes it the safest and most efficient setup for both the trading company and the fiscal representative.<\/span><\/p>\n

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What makes General Fiscal Representation the best option?<\/span><\/p>\n<\/blockquote>\n

General Fiscal Representation gives your business its own distinct sub-VAT number, with all reporting handled entirely separately from other companies:<\/span><\/p>\n