05 dec Exporter must be established in Union
Exporter must be established in Union
Export declaration: exporter must be established in Union
As of the 15th day of the month following the month in which the Dutch government stops the measures taken to combat the coronavirus, a non-EU established entity will no longer be allowed to be reported in box 2 of the export declaration.
Consequences Exporter established in Union
As of than a non-EU company can no longer act as exporter for exports from the Netherlands, while this is currently allowed for non-EU companies which appointed an indirect customs representative. Non-EU companies exporting from the Netherlands therefore have about half a year within which they must arrange alternative means of ensuring Dutch exports continue to flow as usual.
The change in approach of the Dutch Customs will have an impact on non-EU principal companies, non-EU companies in general or, considering Brexit, UK companies currently exporting from the Netherlands.
Authorization other company
They will now need to authorize another company to act as exporter, or change their EU customs presence so that they will be regarded a company established in the EU Customs Territory (either by setting up an EU entity, or by establishing a “permanent business establishment” for customs purposes).
Steps to limit impact
Non-EU companies exporting from the Netherlands should review their supply chain and ensure it is in conformity with the new changes. Businesses should also work with their local tax professional to:
- Determine which other EU established party may act as exporter for customs purposes in the EU, and appoint that party as exporter by means of business and contractual arrangements (e.g. authorize this company by way of a Power of Attorney covering the export activities);
- Consider the EU presence of the company: by establishing a “permanent business establishment” for customs purposes, the non-EU company might qualify as an EU established entity allowing it to export from the Netherlands;
- Review the current supply chain set-up and address supply chain & trade flow optimization;
- Address modifications to upcoming or existing IT implementation programs (e.g., implementation of ERP systems) resulting from the alterations to the roles of the stakeholders in the distribution model.
Source: EY Tax professionals / Belastingdienst
If you require more background information or assistance with your declaration or need advice, please contact one of the consultants at SGS Maco. We are happy to help.