Trading in goods and services subject to 0% VAT? Dutch decree updated recently.
Trading in goods and services subject to 0% VAT? Dutch decree updated recently.
Are you engaged in international trade of goods and services subject to 0% VAT? The State Secretary of Finance has published an updated Decree on the application of the zero rate in the Netherlands.
Are you engaged in international trade of goods and services subject to 0% VAT? The State Secretary of Finance has published an updated Decree on the application of the zero rate in the Netherlands. The decree has been amended to take into account changes in the Dutch VAT Act, excise and customs legislation and recent developments in the case law of the European Court of Justice. The updated Decree will enter into force on April 1, 2024.
What is Table II?
Table II of the Dutch VAT Act of 1968 lists the goods and services to which the zero VAT rate applies. In particular, the application of the zero VAT rate to supplies made in connection with international trade in goods and services results in the full deduction of input VAT in respect of such supplies. The decree on the application of Table II also provides legal guidance and sets limits on the application of the zero rate.What are the most important changes?
- Section a.1. further clarifies the reporting and application of zero rate on goods entering the Netherlands that have not yet been imported and have been supplied within the EU. You can read more about it here.
- Section a.2 is adapted with an explanation of the application of zero rate on export in case of chain transactions and includes a model declaration to prove an export when the buyer takes the vessel to a destination outside the Union on its own keel and after temporary return to port in the Netherlands for warranty work. You can read more about it here.
- Section a.6 contains rules of evidence according to the Dutch system to prove that intra-community transport has taken place. Depending on the mode of transport chosen, different means of proof are available. The additional clarification reflects the simplification rules for intra-community sales in accordance with the EU VAT Directive.