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Deposit annual accounts with Dutch Chamber of Commerce

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According to Title 9, Book 2 of Dutch civil code, every Dutch private or public limited company must prepare and deposit annual accounts with the Dutch Chamber of Commerce.

Deadline to deposit the annual accounts with the Chamber of Commerce
A company must file its annual accounts on time. The annual accounts must be deposited with the Chamber of Commerce within eight days after adopting the annual accounts in a shareholder’s resolution. The deadline for depositing the annual accounts depends on the legal structure of your business, but at the most this is within 12 months from the end of the financial year. We have the required software and certificates to assist with depositing of annual accounts with the Chamber of Commerce, we can also prepare the shareholder’s resolution.

We can assist with depositing annual accounts at the Chamber of Commerce

Required details of the deposited annual accounts
The annual reporting regulations offer exemptions with regard to the details and content of the annual accounts and the filing thereof. If and which exemption applies to a limited depends on the size of the company.

The four different sizes are micro, small, medium and large. At a minimum the balance sheet is to be deposited for a micro size company, from there the required details only increase per following size. In the table down below you can see which criteria will need to be met. A company falls into a certain category if it meets at least two of the three criteria in the table during two consecutive years.

€                                                            Micro                    Small                     Medium size                     Big

Assets                                                 ≤350.000             ≤6.000.000          ≤20.000.000                       >20.000.000

Net revenue                                     ≤700.000             ≤12.000.000       ≤40.000.000                       >40.000.000

Number of employees                 <10                        <50                        <250                                     ≥250

(< = less than, ≤ = less than or equal to,  > = more than, ≥ = more than or equal to)

An example of micro to small:
A company has assets on the balance sheet for an amount of €200.000 (micro), a net revenue of 5 million (small) and 5 employees (micro) in the years 2019 and 2020. The company therefore qualifies as micro as it meets two of the three criteria for two consecutive years.

In 2021 the company has assets on the balance sheet for amount of € 500.000 (small), a net revenue of 5 million (small) and 5 employees (micro). In this case the company meets two of the three criteria for a small company. However, the criteria for a small company has not yet been met for two consecutive years. Therefore 2021 will be considered a transition year and the company will remain micro in the year 2021. In 2022 if the company publishes figures that are considered small then that means that from then on the company will be considered small because now it has met two of the three criteria for two consecutive years.

Being considered micro, small, medium or large has consequences for the way companies have to detail their annual accounts and the filing thereof. Do you want to know which exemptions with regarding the organization of the annual accounts apply to your Limited? Don’t hesitate to contact us! We are happy to help. We offer a one stop shop for tax, accountancy and legal services.

Make use of the One Stop Shop to avoid having to register VAT per country

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Make use of the One Stop Shop to avoid having to register VAT per country 

As of 1 July 2021, the rules for distance selling (B2C) changed. The foreign VAT will have to be charged by the entrepreneur to the consumer according to the VAT rules of the country where the consumer is located. Instead of reporting in every EU country where the consumer is located, it is now possible for the supplier to make use of the One Stop Shop (OSS) scheme. The supplier needs to register in a single EU country and can use this opportunity to account for VAT in all EU countries where the consumers are located. This is a major advantage as it significantly reduces administration costs.

There are three variants of the OSS available: 1. The Union scheme 2. The non-Union scheme and 3. The Import Scheme (IOSS) for distance sales under €150. As an entrepreneur outside the EU, it is also possible to make use of the OSS. In principle, the choice of country is free, but if the company has a permanent establishment in the EU, the OSS must be applied for in the country in which the permanent establishment is located. For the non-EU entrepreneur, it may be more advantageous not to register for the OSS if the entrepreneur expects to incur costs on which foreign VAT is charged to him.

The services that qualify for the OSS are: digital services, services that are taxed based on the legislation of the country of the consumers and services that take place in that country. Examples are intra-community distance sales (sales to consumers where the goods are sent from one EU Member State to another) and online services (such as subscription-based platforms).

For EU entrepreneurs, there is a cumulative threshold of €10,000 per year; one entrepreneur meets this threshold if, for example, €5,000 in digital services and €5,000 in intra-Community distance sales have been converted.

There is no threshold for non-EU entrepreneurs; they can always apply for the OSS. If, for example, sales are made from an EU country via a permanent establishment, the €10,000 threshold must again be met and may not be included in the non-EU company’s OSS declaration.

Would you like to make use of the OSS, then TaxAble can assist you! We can assist with amongst others:

  • Registration for the OSS with the Dutch tax authorities;
  • Making quarterly reports for the VAT;
  • Submitting the quarterly reports for the VAT;
  • Take over complete correspondence with the tax authorities.

Personal income tax returns can be filed going back five years

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Personal income tax returns can be filed going back five years. Have you received an invitation to file a personal income tax return? In that case you are obligated to timely file such personal income tax return.

If you did not receive such an invitation, but do you have to pay an amount on personal income tax of  € 46 or more (up to and including 2017) or € 47 or more (from 2018)? In that case you are obligated to request the tax office to receive a personal income tax return.

You can also request a personal income tax return in case you are entitled to an amount of € 15 or more on refund. In the table below you can see when your declaration must reach the tax office at the latest.

Year 2018:
Declaration must be received by: December 31, 2023

Year 2017:
Declaration must be received by: December 31, 2022

Year 2016:
Declaration must be received by: December 31, 2021

Year 2015:
Declaration must be received by: December 31, 2020

Year 2014:
Declaration must be received by: December 31, 2019

We can assist with timely filing of your personal income tax return.

Pro rata Dutch tax deduction for foreign tax residents

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Pro rata Dutch tax deduction for foreign tax residents. Due to European case law originating from February 2017, new rules are applicable regarding the entitlement to deductible items, tax credits and tax-free allowance for qualified non-resident taxpayers.

An important condition to be met was the condition to pay tax here in the Netherlands on at least 90% of your worldwide income, otherwise opting for deductible items, tax credits and tax-free allowance was impossible.

From now on the Netherlands must also (pro rata) take into account the above mentioned deductible items for cases in which foreign taxpayers do not earn 90% or more of their income in the Netherlands. The conditions to be met are:

1) The foreign taxpayer is, as a resident of another Member State of the European Union, another State party to the Agreement on the European Economic Area, Switzerland or the BES islands (the circle of countries) involved in the taxation of that other Member State or State, or the BES islands;

2) The (world) income of the taxpayer determined by Dutch standards is fully or almost entirely (for 90% or more) subject to wage tax or income tax in two or more other states (including the Netherlands) than the state of residence.

3) The (world) income of a taxpayer determined by Dutch standards is not fully or almost entirely (for 90% or more) subject to a wage tax or income tax in a state other than the Netherlands.

A further condition is that the taxpayer must provide an income statement from the tax authority of the state of residence.

If the taxpayer meets the above conditions, then the right to deduct is according to the extent to which the income to be taxed in the Netherlands is part of the world income. We can assist with preparing the correct processing in the Dutch personal income tax return.

Agreements Germany and Belgium home work days Covid-19

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Dutch tax agreements with Germany and Belgium for days working from home due to Covid-19

The main rule for salary taxation is that employees are taxed in the county were they work. Because of Covid-19 people are working way more from home and this can bring unwanted double taxation and a higher income tax burden. Think of situations were usually you traveled a lot and worked often in the country were you get your salary from, this income is taxed there.

But now due to Covid-19 you have not travelled that much and most of your income will be taxable in The Netherlands, while the other country may also want to have a claim on part of your income.

To cope with these problems, additional agreements have been made by The Netherlands with Germany (6th April 2020 – at least 31st of March 2021) and Belgium (30th of April 2020 – at least 31st of March 2021)  regarding working from home.

In both cases the countries have agreed that cross-border workers may treat days worked from home as days were they would have normally (pre Covid-19) worked across the border, these days may be taxed by the other country.

If you require assistance with preparing your personal income tax return, please feel free to contact us.

 

Solutions for Dutch import VAT due after Brexit

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Solutions for Dutch import VAT due after Brexit

The United Kingdom has left the European Union on January 1st 2021 (Brexit). This has consequences for, among other things, VAT.

When importing goods from outside the EU to the Netherlands, VAT is due on these goods immediately upon import. Although this VAT may later be reclaimed, this will lead to a cash flow problem for the UK company.

However, there is a possibility to only first report this import VAT when filing a VAT return. This is beneficial, because this import VAT can then be reclaimed as deductible input VAT in the same VAT return. On balance there is no VAT payable over the import.

To be able to make use of the above arrangement, you must be in the possession of what is known as an “Article 23 permit“. As a foreign entrepreneur, you cannot request for an Article 23 permit yourself. For this purpose you must have a tax representative (‘fiscaal vertegenwoordiger’) in the Netherlands or have a Dutch company which is a tax resident of the Netherlands (just setting up a Dutch B.V. is not enough).

The tax representative of the foreign entrepreneur is responsible for meeting the obligations regarding VAT (and therefore also liable for the financial risks). These obligations are the result of performing activities in the Netherlands which are subject to VAT. In practice, the tax representative relieves the entrepreneur of all administrative burdens that arise from these activities. This gives the entrepreneur the freedom of doing business. The conditions for a tax representative to be met are as follows:

  1. This tax representative must be established in the Netherlands;
  2. The tax representative must provide financial security for VAT (bank guarantees, etc.) towards the tax office.

As an alternative a Dutch B.V. can be incorporated which will take over and perform the UK company’s trading activities within the EU. In order to make use of the above mentioned article 23 permit, the factual management (or majority part thereof) of the Dutch B.V. should be located within The Netherlands.

Brexit has other consequences for VAT as well. For example reclaiming local VAT imposed within the EU, as of 2021 a UK company will have to make use of paper forms instead of the EU online refund procedure.

TaxAble is your one stop shop for tax, accountancy and legal when setting up a Dutch company. We have advised and assisted various UK companies with setting up a Dutch B.V. company. We also advised on the related VAT matters.