transactions in VAT Return
How to process EU (intracommunity) transactions in my Dutch VAT Return?
In the Netherlands, companies are obliged to file their VAT returns ( how to get a Dutch VAT number & how to file VAT returns).
When a company performs international or European business activities (buying/selling) they are also obliged to file their intracommunity transactions. When companies fail to comply with the Dutch law regarding the intracommunity transactions they can be penalized.
What are intra-community transactions according to the Dutch tax authorities?
Underneath we will define the most common forms of intracommunity transactions:
When a company has supplied goods and/or provide services to an entrepreneur in another EU country, and these goods are transported to another EU country. Also, the foreign entrepreneur has to pay VAT in his own country;
When a company has transferred its own goods from the Netherlands to another EU country;
When a company has supplied a new vehicle to a private person or entity not being an entrepreneur for VAT purposes in an EU country.
The ICP declaration is used to provide information to the Dutch tax authorities about the supply of goods and services made by a company in other EU countries. Be aware: The Dutch tax authorities do share this data with other EU countries.
How to file an ICP declaration
An ICP declaration can be filed in three manners:
On www.belastingdienst.nl you can find a form in the password-protected part of the website. This form is only available in Dutch!
With your own declaration software
By your tax representative; Our Tax team can assist you with this! Check our VAT Administration Services!
When to file your ICP declaration
The time period when a company must file its ICP declaration may vary. this is depending on whether the company is supplying goods, providing services or does both.
When a company supplies goods they can choose whether they file their declaration monthly, quarterly or yearly. As from 2016 companies are no longer permitted to file their ICP declaration quarterly if they sell goods with a value of more than € 50.000 per quarter. When a company wants to file their declaration yearly, a permit is needed. Companies can request this permit with the Dutch tax authorities.
Also when a company is providing services they can file their declaration monthly, quarterly or yearly. Just as with supplying goods a permit is needed for filing the declaration yearly.
Supplying goods as well as providing services
When a company supplies goods but also providing services, a separate declaration for the goods and services can be filed. For example, the company can file their declaration for their supplied goods monthly, but quarterly for their provided services.
Intra community transactions need to be filed in the period on which the invoice is dated.
You always need to have the VAT number of the buyer, and you will have to check whether this number is valid. This can you do on http://ec.europa.eu/taxation_customs/vies/?locale=nl
EC Sales List
EC Sales Lists (ESLs) declarations are sometimes required where supplies of goods and/or services are made to another EU VAT registered business. The filing periodicity depends on the type of transactions made and the reporting country. We can help by analysing your business transactions to determine where and when you need to submit ESLs, and completing these on your behalf.
Intrastat reporting is another supplementary cross-border declaration that must be filed periodically. Intrastat reports relate to goods only and there are different thresholds for arrivals and dispatches of goods across the EU, which determine when reporting is required. This means keeping track of sales and purchases in all of the EU countries which is burdensome but comes as part of our service.
Many businesses aren’t aware of the requirement to file Intrastat returns and as a result, have an unknown historic liability. We can help with retrospective issues and the mitigation of penalties, if applicable.
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