How does import VAT work when bringing goods into the Netherlands?

april 2, 2026

When goods arrive in the Netherlands from outside the European Union, VAT is due at the border before those goods can enter free circulation. This is import VAT, and it applies to virtually every commercial shipment entering Dutch territory from a non-EU country. For foreign companies moving products into Europe through the Netherlands, understanding how this works is not optional—it directly affects cash flow, compliance, and your ability to operate efficiently.

The good news is that the Dutch system includes a well-established mechanism to manage import VAT without creating unnecessary cash-flow pressure. Here is a clear breakdown of how it works, who pays, and what you need to get right.

What is import VAT and when does it apply in the Netherlands?

Import VAT in the Netherlands is a consumption tax charged on goods entering the country from outside the European Union. It applies when goods are released into free circulation within the EU, using the same rates as domestic VAT in the Netherlands: currently 21% for most goods and 9% for certain categories, such as food and medicine.

The tax is calculated on the customs value of the goods, which includes the purchase price, transport costs, and insurance up to the point of entry into the EU. This means the taxable base for import VAT is typically higher than the invoice value alone. Any business importing goods commercially into the Netherlands will encounter this charge, regardless of whether it is a Dutch entity or a foreign company registered for VAT in the Netherlands.

Import VAT applies to physical goods only. Services follow different VAT rules. The obligation arises at the time of customs clearance, making it a point-of-entry charge rather than a charge on the eventual sale.

Who is responsible for paying import VAT in the Netherlands?

The party responsible for paying import VAT in the Netherlands is the importer of record—the entity named on the customs declaration as the declarant. This is typically the buyer of the goods, the Dutch entity receiving the shipment, or a customs agent acting on their behalf. The obligation falls on whoever is releasing the goods into free circulation within the EU.

For foreign companies importing into the Netherlands, this often means that the Dutch subsidiary or branch is the importer of record. If no Dutch entity exists, a fiscal representative may be required to handle the customs declaration and VAT obligations on behalf of the foreign company.

It is worth noting that logistics providers and freight forwarders sometimes act as declarants under indirect representation arrangements. In those cases, they share joint and several liability for the customs debt, which is why most reputable forwarders require clear written agreements before accepting this role. Foreign companies should confirm in advance who will act as declarant and what liability that arrangement entails.

How does the Article 23 VAT deferment licence work?

The Article 23 licence is a Dutch VAT deferment mechanism that allows eligible businesses to shift import VAT payment from the moment of customs clearance to their periodic VAT return. Instead of paying import VAT upfront at the border, the company self-assesses the VAT on its regular return and simultaneously claims it as input tax, resulting in a net-zero cash impact in most cases.

This is one of the most practically valuable features of the Dutch VAT system for international businesses. Without it, import VAT must be paid at clearance and then reclaimed later, creating a cash-flow gap that can be significant for high-volume importers.

To obtain an Article 23 licence, a company must be registered for VAT in the Netherlands and meet certain conditions set by the Dutch Tax and Customs Administration (Belastingdienst). Dutch-established businesses can apply directly. Foreign companies without a fixed establishment in the Netherlands typically need to appoint a fiscal representative to access this arrangement.

The licence is not automatic. It requires a formal application, and the Dutch tax authorities assess whether the applicant meets the requirements. Once granted, it applies to all qualifying imports and significantly simplifies cash-flow management for regular importers.

What is the difference between import VAT and customs duties?

Import VAT and customs duties are two separate charges that both apply when goods enter the Netherlands from outside the EU, but they serve different purposes and are calculated differently. Customs duties are trade tariffs determined by the product’s commodity code and country of origin, and the revenue flows to the EU budget. Import VAT is a consumption tax that mirrors the domestic VAT rate and flows to the Dutch government.

The key practical differences are:

Basis of calculation: Customs duties are applied to the customs value of the goods. Import VAT is then calculated on the customs value plus any customs duties already charged, meaning VAT is effectively applied on top of the duty.
Recoverability: Import VAT is generally recoverable as input tax by VAT-registered businesses, provided the goods are used for taxable activities. Customs duties are a cost and are not recoverable through the VAT system.
Rate variability: Customs duty rates vary widely depending on the product and origin, and can sometimes be reduced or eliminated through trade agreements. Import VAT applies at the standard Dutch rate for the product category.
Deferment options: Import VAT can be deferred via the Article 23 licence. Customs duties must generally be paid at clearance unless a specific customs procedure, such as a bonded warehouse or inward processing relief, applies.

Understanding this distinction matters for cost planning. Customs duty is a real cost to the business. Import VAT, for most registered companies, is a cash-flow timing issue rather than a permanent cost.

Can you reclaim import VAT paid in the Netherlands?

Yes, VAT-registered businesses can reclaim import VAT paid in the Netherlands, provided the imported goods are used for taxable business activities. The reclaim is made through the regular Dutch VAT return as input tax. If the Article 23 licence is in place, the import VAT is self-assessed and simultaneously deducted on the same return, making the net position zero from the outset.

Where import VAT has been paid upfront at customs without an Article 23 licence, the amount can still be reclaimed on the next periodic VAT return. The supporting document for this reclaim is the customs declaration (the Single Administrative Document, or SAD), which must clearly show the VAT paid and the importer’s details.

Businesses that are partly exempt from VAT—meaning they make both taxable and VAT-exempt supplies—can reclaim only the proportion of import VAT that relates to their taxable activities. This is the same partial-exemption logic that applies to domestic input VAT, and it requires careful tracking when goods are used across both types of activity.

Foreign companies not established in the Netherlands but registered for VAT in the Netherlands follow the same reclaim process. If a foreign company has no VAT registration in the Netherlands at all, it may be able to reclaim import VAT through the EU VAT refund procedure, though this route has limitations and does not apply in all circumstances.

What documents are needed to account for import VAT correctly?

Correct import VAT accounting in the Netherlands requires a specific set of documents that prove the importation took place, establish the customs value, and confirm the VAT treatment applied. The primary document is the customs declaration, commonly referred to as the SAD or the electronic equivalent processed through the Dutch Customs system.

The following documents are typically required:

Customs declaration (SAD/electronic declaration): This is the core document confirming the import, the customs value, the duty paid, and the VAT position. It must show the importer’s EORI number and VAT number.
Commercial invoice: Issued by the supplier, showing the purchase price, description of the goods, and country of origin. This forms the basis for customs valuation.
Transport documents: Such as the bill of lading, airway bill, or CMR, confirming the shipment details and the point of entry.
Packing list: Supporting the invoice with detailed content descriptions, weights, and quantities.
Article 23 licence (if applicable): This must be referenced on the customs declaration to activate the deferment mechanism.
Proof of insurance and freight costs: These are included in the customs value calculation and need to be documented.

Maintaining a complete and organised set of documentation is not just good practice—it is a legal requirement. The Dutch tax authorities can request these records during a VAT audit, and gaps in documentation can result in denied input tax claims or assessments for underpaid VAT.

What are the most common import VAT mistakes businesses make?

The most common import VAT mistakes in the Netherlands stem from gaps in registration, incorrect use of the Article 23 licence, and poor documentation practices. Foreign companies entering the Dutch market are particularly exposed because the Dutch system has specific requirements that differ from what they may be used to at home.

Here are the mistakes that come up most frequently:

Importing without a VAT registration: Companies that begin importing before completing their Dutch VAT registration cannot use the Article 23 mechanism and may face complications when reclaiming import VAT already paid.
Not applying for an Article 23 licence: Many businesses pay import VAT upfront at customs simply because they are unaware that the deferment licence exists. This creates unnecessary cash-flow pressure that is entirely avoidable.
Incorrect customs value: Undervaluing goods to reduce the customs duty base is a compliance risk. It also affects the import VAT calculation, and Dutch Customs actively monitors this.
Missing or incomplete customs declarations: Without a properly completed customs declaration showing the company’s VAT number, the input tax reclaim on the VAT return cannot be substantiated.
Confusing import VAT with customs duties: Treating import VAT as a non-recoverable cost when it is actually reclaimable leads to overstated import costs and incorrect financial reporting.
Fiscal representative not in place for non-EU companies: Non-EU-established companies often need a fiscal representative to access the Article 23 licence. Failing to arrange this before the first shipment causes delays and cash-flow issues.

Getting the setup right before the first shipment arrives saves significant administrative effort later. If your company is importing into the Netherlands and you want to make sure the VAT position is structured correctly from the start, we are happy to help you review the setup and ensure that nothing falls through the cracks. You can learn more about how we support VAT compliance in the Netherlands or get in touch with our team at PrimeBridge Global to discuss your specific situation.