Dutch Tax Authority
For entrepreneurs who import goods from outside the EU, the Article 23 permit can result in significant savings. With this permit, you do not have to pay VAT on imports immediately at customs. Instead, the VAT is shifted to your VAT return.
This significantly improves your cash flow and prevents unnecessary costs. In this article, we explain what the Article 23 permit entails, how to apply for it, and what benefits it offers.
When you import goods from outside the EU, you are normally required to pay VAT immediately upon import to customs. With an Article 23 permit, this VAT is not paid immediately but is shifted to your periodic VAT return. This means you declare the VAT in your VAT return instead of paying it upfront 😬
The permit is available to entrepreneurs who meet the following conditions:
• you are resident in the Netherlands or have your business established in the Netherlands
• you regularly import goods from outside the EU
• you have a valid VAT number
Both sole traders and private limited companies can apply for the permit, provided they meet the conditions set by the Dutch Tax Authorities.
The Article 23 permit offers several advantages.
• improved cash flow, because you do not need to pre-finance VAT at the time of import, allowing you to retain liquidity
• less administrative burden, as the VAT is settled in your VAT return, simplifying your bookkeeping
• prevention of double costs, since without the permit you pay VAT at import and later reclaim it, which can be time-consuming
• particularly beneficial for resale within the EU, especially if you import products and sell them onward within the European Union
The application process for an Article 23 permit runs through the Dutch Tax Authorities and must be submitted by post. The main steps are as follows.
① check whether you are eligible, meaning you are VAT-liable and actively importing goods regularly
② using the form “Application for Article 23 permit” also vailable on the website of the Dutch Tax Authorities (only in Dutch)
③ wait for approval, as the tax authorities will review your application and may request additional information
④ receive the confirmation letter with start date of the permit, this islinked to your VAT number by written confirmation
There are several important points to keep in mind.
✔ the permit only applies to entrepreneurs who file VAT returns in the Netherlands
✔ you must maintain a correct VAT administration, including an overview of imported goods so please make folders for each import and attach all files to each folder
✔ in cases of misuse or errors, the permit may be withdrawn by the Dutch Tax Authorities
Applying for an Article 23 permit can be administratively challenging. If you want to be sure that your application is submitted correctly and that you make optimal use of the permit, Sarabel is happy to assist you. We help you with the application process and ensure that you do not miss out on any benefits.
📅 Schedule a free consultation and discover how to optimize your import process.