Trading operations were quite complicated in foreign countries few years ago. It was not easy to trade with the other countries without having the knowledge of their tax services and general trading rules. However due to the recent amendments in the tax registration process in European and other countries made it easy for the non-resident traders to initiate their operations smoothly. Fiscal representation in Netherlands is much similar to that of other EU countries.
Netherlands is a country in the European Union where the foreign traders need to register for the VAT and other import duties. This registration is called the Dutch VAT registration process and is performed by the local fiscal representative. There are two types of fiscal representation in Netherlands i.e. the fiscal representative with the general license and the fiscal representative with a limited license. Only a local fiscal representative can be appointed for both the general and limited license by the foreign trading company.
Following the VAT registration process the non-resident company should submit the periodic VAT returns to the local tax authorities through the fiscal representative. It is important to apply for the import VAT deferment license in Netherlands for the initiation of the import of the goods and this is totally handled by the local fiscal representative. It is essential to apply for this license as it implies the VAT duty on the import goods after the import declaration. The regular cash flow and profits are initiated once the registration done for the import VAT deferment license.
The administrative tax obligations are understood by the local fiscal representative and they can further easily register the foreign company for the Dutch VAT system. It is generally preferable to appoint a local fiscal representative for the VAT registration and import VAT deferment license in Netherlands.