The EU VAT rules, which also cover the Netherlands, will change per 1st of July 2021, for companies that sell goods to individual buyers in Europe.
Currently, VAT rules stipulate that a (Dutch) business should charge and pay VAT in the country where the individual buyer)s receive the goods), if they exceed the turnover threshold of that country. For example, the threshold in Germany is set at 100.000 EUR (per year) at the moment. However, this threshold is being reduced to only 10.000 EUR, and will apply for each EU member state. This means, if you will be selling for 11.000 EUR in goods to the German market, specifically to individual buyers, you will have to charge the German VAT rate, and pay the VAT to the German tax offices.
This can result in a great additional administrative hassle, since your business would have to file VAt returns in each country of operation.
To compensate for this hassle, the EU has implemented the One-Stop-Shop (“OSS”) portal, which allows you to file the VAt returns for each member state, via 1 portal.
INCO can assist you to apply for access to such a portal in the Netherlands. Are you planning to sell more then 10.000 EUR in goods to individual buyers in a specific Member State, please contact us to discuss the requirements. The OSS tax return needs to be filed manually, and can’t be filed using accounting software, as of this moment. Our accounting team is happy to assist you with this, once your OSS access has been granted. Apply for an OSS account in the Netherlands, contact us.