Foreign entrepreneurs who have their business or sales market in the Netherlands have to deal with Dutch VAT laws. If an entrepreneur does not live in the Netherlands, is not situated or does not have a permanent establishment in the Netherlands, he can appoint a Dutch tax representative in order to comply with administrative obligations arising from the Dutch VAT laws.

Beheer- en Administratie Maatschappij BV

Since 1992 tax representation is legally an option. Beheer- en Administratie Maatschappij Nederland BV (abbreviated: BAM NL) can fulfil this role. Appointing a tax representative is compulsory for foreign entrepreneurs in the following cases:

import of goods by using the reverse-charge mechanism;
transactions with excise goods in an excise warehouse;
if goods are stored in a bonded warehouse;
distance selling in the Netherlands by a non EU-company.

What does a tax representative do?

The tax representative of the foreign entrepreneur is responsible for complying with obligations regarding VAT. These obligations are a consequence of taxed performances in the Netherlands. It means, in practice, he takes responsibility for the full administrative burden arising from this. leaving the entrepreneur free to do business.

Tax Representation Services

VAT returns;
administration and declaration of intra-community deliveries to other EU countries (ICP declaration);
Intrastat declaration;
advice on VAT and customs
Contact tax authorities/Statistics Netherlands (CBS);
registration of tax representation;
license applications.

The benefits of tax representation

The benefit of appointing BAM NL is that the foreign entrepreneur:

does not have to pay import VAT at the border (by means of. an art. 23 licence);
can charge 0% VAT for trade in a bonded warehouse for deliveries such as minerals/oils;
can charge 0% via an excise warehouse.

BAM NL also offers clients the privilege of applying and securing a one-off bank guarantee for five years. This bank guarantee is a condition of appointing a tax representative.

Bank guarantee

The Dutch tax authorities (Belastingdienst) require a bank guarantee if a foreign entrepreneur appoints a tax representative. A bank guarantee is a contract stating that a bank unconditionally guarantees to pay an amount to the beneficiary if he is entitled to it. In January 2014 the Dutch tax authorities linked the bank guarantee to a minimum and maximum amount. Foreign entrepreneurs that trade in bulk goods, semi-finished products and production resources must provide a bank guarantee between € 5,000 and € 100,000. Entrepreneurs that trade in consumer goods must provide a bank guarantee between € 5,000 and € 500,000.

In order to be able to act as tax representative in the Netherlands, a licence must be obtained from the Dutch tax authorities. There are two types of licences:

a general license. In this case the representative acts on behalf of the foreign entrepreneur for all deliveries and services for which VAT is charged, for intra-community acquisitions and for import.
a restricted license. In this case the representative acts on behalf of the foreign entrepreneur for imported goods and the subsequent delivery of these goods.

Beheer- en Administratie Maatschappij Nederland B.V. (BAM NL) has a general license.