Summary
A number of changes will be applicable to Dutch VAT reporting requirements. Some are a result of changes in EU VAT legislation, others are part of measures combating the economic downturn. Some measures may have a positive effect on your business, others will create an extra administrative burden. All changes affect businesses that are subject to VAT related reporting requirements in the Netherlands. The changes concern a choice to be made in the VAT return filing period and obligations relating to the EC Sales Lists foor goods and services.
Full articleA number of changes will be applicable to Dutch VAT reporting requirements. Some are a result of changes in EU VAT legislation, others are part of measures combating the economic downturn. Some measures may have a positive effect on your business, others will create an extra administrative burden.
All changes affect businesses that are subject to VAT related reporting requirements in the Netherlands. You will have to make decisions with regard to your preferences regarding reporting periods. Also, you may have to adjust some settings in your ERP system as a result of these changes.
Changes in VAT return filing period
Changing your filing period
As a result of the changes, you can now choose your VAT return filing period, effective from July 2009:
Later this month, the Dutch tax authorities will send businesses that file monthly VAT returns a letter in which they explain this measure and ask businesses to choose their filing period by returning an attached reply coupon before 1 June 2009. Other businesses will not receive notification but are also allowed to change their filing period. They will have to notify the tax authorities of their choice in writing. The chosen (or unadjusted) period can be changed again at a later moment, as per a written request. The tax authorities informed us that no written confirmation of a successful change will be sent to businesses.
Should you decide to change your VAT return filing period, this change will be effective from 1 July 2009 until 31 December 2010. This option also applies to VAT returns filed by fiscal representatives. Special regimes will be applicable to VAT returns filed by businesses that are included in VAT groups. Please note that this measure only applies to filing VAT returns, not to other filing obligations.
When should you choose to change your filing period?
Businesses that are (usually) in a position where VAT is payable on the monthly VAT returns can postpone actually paying VAT by choosing to file their VAT returns quarterly. This may help your cash flow position and could save interest. Businesses that are usually in a refund position or businesses that expect a major investment during the relevant period will in most cases not benefit from this measure.
The possible downside of changing the filing period is that some settings in the ERP system might have to be adjusted, and will have to be adjusted again after this measure is discontinued. Also, businesses that are now allowed to file VAT returns for estimated amounts (‘schattingsaangiften’) will have their licences revoked if they change to monthly returns.
EC Sales Lists
EC Sales Lists - goods
EC Sales Lists currently have to be filed on a quarterly basis when supplying goods to businesses in other EU Member States. From 1 January 2010, these EC Sales Lists will have to be filed on a monthly basis if the total value of the supplied goods exceeds € 100,000. If this applies to your business, this means that your ERP system has to be adjusted and your staff should be prepared.
EC Sales Lists - services
From 1 January 2010, businesses also have to submit EC Sales Lists for all services provided to businesses in other EU countries, where the recipients of these services are liable for the local VAT due on these services (‘reverse charge’) and these services are not exempt in the recipient’s country. As in the EC Sales Lists for goods, the VAT identification number of each customer as well as the total value of the services supplied to him per taxable period have to be included in the EC Sales List for services.
These EC Sales Lists for services have to be filed on a monthly basis, but all businesses are allowed to choose to file those quarterly. Businesses should inform the tax authorities of this choice in writing.
Intrastat declarations
Statistics Netherlands (CBS) gathers and processes information with regard to the trade of goods between the Netherlands and other (EU as well as non EU) countries. Information with regard to EU trade is acquired through Intrastat declarations. Businesses have to submit such declarations to CBS on a monthly basis if a threshold of € 900,000 per year in either sales to, or purchase from foreign EU businesses is exceeded. There are no changes in this respect at the moment. However, CBS is considering introducing an Intrastat obligation for services as well. We will inform you on this issue as soon as more information is available.
What should you do now?
You should carefully consider what period for filing VAT returns as well as EC Sales Lists for services is best for your business. You should adjust y
our ERP system well in time to these changes.
Source: Ministry of Finance, 9 April 2009, bill no. 31 301.