Importing services
When you import services from abroad, the service provider will most likely reverse-charge VAT to you. If a person from outside the EU comes to the Netherlands to provide the service, make sure they have the right qualifications and permits. If you take them on as an employee, different rules apply than if you only hire them for a temporary project.
You are usually the one to declare VAT
The service supplier usually reverse-charges the VAT to you. You will then receive an invoice without VAT, stating that the VAT has been reverse-charged to you. You will then have to calculate the VAT yourself, and declare it in your VAT return.
Are you allowed to deduct the VAT on your business expenses? Then you can deduct the VAT you pay from your VAT return as input tax. You will effectively have paid no VAT.
Claiming a refund of foreign VAT
If the supplier is not allowed to reverse-charge VAT to you, you will pay the foreign VAT rate.
- If your supplier is located outside the EU, you can consult with the foreign tax authority to ask about any VAT refund options.
- If your supplier is located in the EU, you can often claim a VAT refund from the Dutch Tax Administration. Read more about VAT on services from other EU countries.
Check: Employee or self-employed professional?
Do you want someone from abroad to perform the service for you, here in the Netherlands? Then examine whether you want to employ them for this purpose or hire them as a freelancer. If you use a model agreement (in Dutch) you avoid having to pay payroll taxes later on.
Also check whether you need to apply for a work permit for your employee or freelancer.
Non-EU nationals: check permits
A foreign self-employed professional that comes to the Netherlands to provide a service for you does not require a work permit (TWV). In most cases, they will not need a short-stay visa. You, as the client, may have to act as a guarantor for the person coming over. If the stay is longer than 3 months, a residence permit (preceded by a temporary one, an MVV in Dutch) is required.
A professional who starts in your employment does require a work permit (TWV) for which you have to apply at the Employment Insurance Agency. If the employee is going to stay in the Netherlands for more than 3 months, they will require a single permit (combined residence and work permit, GVVA in Dutch) from the Immigration and Naturalisation Service (IND).
Personal care services
Personal care provided in the Netherlands is subject to Dutch law, no matter who provides it. Service providers must comply with Dutch quality standards, such as having valid qualifications, or (in the case of health professionals) being registered in the BIG-register.
Statistics: import of services
Import value of total services from all countries.
Questions relating to this article?
Please contact the Netherlands Chamber of Commerce, KVK