Case 3: AMS–Central Hub for European-Wide Transshipment

Infrastructure (Software)

• Speedy customs clearance
• Amsterdam (AMS) / Rotterdam (RTM) – Overtime, charge required
• Maastricht (MST) - No overtime charge

Article no.23 Regulation (Software)

Shipment import to EU through Holland -> VAT applied immediately upon customs cleared
For companies having registered VAT no. in Holland

VAT postponed upon arrival in Holland until goods eventually sold to end-customers, who is responsible for VAT, companies are bound to collect VAT from end-customers on behalf
of EU countries

Customer Demand

To distribute goods European-wide in time

Dimerco	Model	Efficiency Analysis
Material Flow	Europe-wide delivery through MST Holland	Speedy customs clearance, shortening of delivery lead time Enhancement of customs satisfaction
Financial Flow	Application of Fiscal Rep. system in Holland	Postpone VAT payment, avoiding unnecessary liquidation & interests burden Sound financial & cash flow management

Value Added Tax (VAT)

When goods or services are imported into a country Value Added Tax (VAT) must be paid to the Tax authorities. The VAT charges paid can be claimed back from the Tax authorities. If no special arrangements are made, importers in the Netherlands have to pay 19% VAT (standard VAT rate for non-food items in the Netherlands), which is refunded in the periodical return.

Using the fiscal benefits has a positive impact on your cash-flow!

If goods are imported into the free circulation of the European Union (EU), VAT and import duties become due. This means that VAT and duties need to be paid at the moment that goods are imported into the EU.

VAT deferment for Dutch registered companies

The Netherlands have implemented a beneficial system called “VAT deferment”, based on Article 23 of the Dutch Tax regulations. Article 23 allows you not to pay VAT at the moment of importation into the Netherlands, but the VAT payment is deferred to the periodical VAT return. In this periodical return, import VAT needs to be declared, but can be deducted in the same return.

This means there is no actual payment of VAT at import.

Benefits

• No actual payment of VAT
  
• Results in considerable cash-flow and interest benefit
  
• After customs entry in the Netherlands, the goods are free (VAT) to circulate within EU

Fiscal Representation

The Fiscal Representative system allows you to not actually pay VAT upon clearance, but defer the obligation to pay VAT to the next company / user in your supply chain. The customer pays VAT.

Companies with a valid Dutch VAT number as well as Article 23 license can benefit from the VAT deferment arrangement.

Dimerco Netherlands has a Fiscal Representative service for their clients. This means Dimerco Netherlands uses a local (Dutch) VAT number in order for clients to benefit from the VAT deferment.

Benefit

Fiscal Representation can be used by foreign companies (except Dutch companies) to enhance their cash flow position, while importing goods into the European Union.