Zero-rated services – Do you have the right paperwork?
Zero-rated services – Do you have the right paperwork?
Import VAT at 21% must be paid when goods are imported into the Netherlands. The value on which import VAT is due is based on the value of the goods for customs purposes. Added to the customs value are costs of services, such as transport services, performed up to the first place of the goods’ destination in the EU. To avoid double taxation, a zero rate applies to these services.
The Court of Justice of the European Union (CJEU) issued a decision in September 2023 in which it concluded that the mere fact that costs must be added to the customs value does not automatically mean that the VAT zero rate may be applied to these services. The trader must be able to demonstrate that the services are related to the goods to be imported and that their value has been added to the customs value on which import VAT is due. Documents that can be used (specifically in the case of transport services) as proof according to the CJEU include a CMR waybill, the invoice and the transport contract. The tax authorities may not require the submission of specific documents provided the documents produced can be deemed to be authentic and reliable. Thus, the entrepreneur can make use any documents supporting their claim to apply the zero rate.
The Court of Justice of the European Union (CJEU) issued a decision in September 2023 in which it concluded that the mere fact that costs must be added to the customs value does not automatically mean that the VAT zero rate may be applied to these services. The trader must be able to demonstrate that the services are related to the goods to be imported and that their value has been added to the customs value on which import VAT is due. Documents that can be used (specifically in the case of transport services) as proof according to the CJEU include a CMR waybill, the invoice and the transport contract. The tax authorities may not require the submission of specific documents provided the documents produced can be deemed to be authentic and reliable. Thus, the entrepreneur can make use any documents supporting their claim to apply the zero rate.