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MFFA Belastingadvies | Tax Advice Specialized in Expats and International Companies

MFFA Belastingadvies | Tax Advice Specialized in Expats and International Companies Amsterdam | Zwolle | Assen The Netherlands. VAT how does is work?. Introduction of VAT. What is this? Do you have to charge this? Can I get it back?. Invoice Price excl. VAT € 100,-

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MFFA Belastingadvies | Tax Advice Specialized in Expats and International Companies

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  1. MFFA Belastingadvies | Tax Advice Specialized in Expats and International Companies Amsterdam | Zwolle | Assen The Netherlands

  2. VAT how does is work?

  3. Introduction of VAT • What is this? • Do you have to charge this? • Can I get it back? Invoice Price excl. VAT € 100,- VAT 20% € .20,- Price incl. VAT € 120,-

  4. Entrepreneur A supplies goods and/or services • Entrepreneur A is obliged to charge VAT on goods/services supplied (EU VAT Rules prescribe this ability). • The recipient can deduct the VAT if he is an entrepreneur. Entrepreneur A ??? B Supply of goods and/or services

  5. ??? B receives an invoice • Entrepreneur A charges € 120,- (invoice incl. VAT) to B. • Entrepreneur A pays € 20,- VAT to local Tax Authority ??? B € 20,- Invoice Price excl. VAT € 100,- VAT 20% € .20,- Price incl. VAT € 120,- Entrepreneur A € 20,- € 120,- € 120,- € 100,-

  6. Can ??? B reclaim the paid VAT If ??? B is an entrepreneur, he can reclaim the paid € 20,- VAT. If ??? B is a private individual (“PI”), he cannot reclaim the paid € 20,- VAT. ??? B Entrepreneur B .0.. PI B Invoice Price excl. VAT € 100,- VAT 20% € .20,- Price incl. VAT € 120,- € 20,-

  7. Basic principle

  8. When does VAT apply Situation 1 United States Europe Import VAT is due by importer of record Import

  9. When does VAT apply Situation 2 Europe The Netherlands Germany Intracommunity supply VAT 0% applies under conditions

  10. When does VAT apply? Situation 3 The Netherlands B A Local Supply VAT 19%

  11. When does VAT apply? Situation 4 United States Europe 0% Export VAT-rate applies under conditions Export

  12. When does VAT apply? Situation 5 Europe The Netherlands Germany VAT-charge is reversed to recipient, local VAT in country of recipient is due but can be deducted as input again. Intra community acquisition

  13. Pitfalls Formal rules for intracommunity supplies and acquisitions are not met Distance sales Incorrect invoices (incorrect reflection of supply at hand) Incorrect filing of returns leads to problems Incorrect (local) VAT rates reported

  14. Contact For furtherinformation pleasedo nothesitateto contact us: E-mail: info@mffa.nl Website: www.mffa.nl

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