Presentation on theme: "MFFA Belastingadvies | Tax Advice Specialized in Expats and International Companies Amsterdam | Zwolle | Assen The Netherlands."— Presentation transcript:
MFFA Belastingadvies | Tax Advice Specialized in Expats and International Companies Amsterdam | Zwolle | Assen The Netherlands
VAT how does is work?
Introduction of VAT Invoice Price excl. VAT 100,- VAT 20%.20,- Price incl. VAT 120,- What is this? Do you have to charge this? Can I get it back?
Entrepreneur A supplies goods and/or services Entrepreneur A Supply of goods and/or services ??? B 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.
??? B receives an invoice Entrepreneur A ??? B 120,- Invoice Price excl. VAT 100,- VAT 20%.20,- Price incl. VAT 120,- 120,- 20,- 100,- 20,- Entrepreneur A charges 120,- (invoice incl. VAT) to B. Entrepreneur A pays 20,- VAT to local Tax Authority
Can ??? B reclaim the paid VAT ??? B Invoice Price excl. VAT 100,- VAT 20%.20,- Price incl. VAT 120,- If ??? B is an entrepreneur, he can reclaim the paid 20,- VAT. Entrepreneur B 20,- If ??? B is a private individual (PI), he cannot reclaim the paid 20,- VAT..0.. PI B
When does VAT apply Situation 1 United StatesEurope Import Import VAT is due by importer of record
When does VAT apply Situation 2 Europe Intracommunity supply VAT 0% applies under conditions The NetherlandsGermany
When does VAT apply? Situation 3 Local Supply VAT 19% The Netherlands A B
When does VAT apply? Situation 4 United StatesEurope Export 0% Export VAT-rate applies under conditions
When does VAT apply? Situation 5 Europe Intra community acquisition VAT-charge is reversed to recipient, local VAT in country of recipient is due but can be deducted as input again. The NetherlandsGermany
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
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