Article 23 refers to Article 23 of the Dutch VAT Act 1968 (Wet op de omzetbelasting 1968). It allows businesses holding an Article 23 licence (vergunning artikel 23) issued by the Dutch Tax and Customs Administration (Belastingdienst) to defer import VAT on goods brought into the Netherlands from outsidethe EU.
Instead of paying import VAT to Dutch Customs when goods are released for free circulation, the importer declares the import VAT in its periodic Dutch VAT return under the reverse charge mechanism.
Where the business has full right of deduction the same amount is reclaimed as input VAT in that return, so no cash changes hands.
The licence can be held by a business established in the Netherlands, a foreign business registered for VAT in the Netherlands or a fiscal representative acting on behalf of a non-EU business. Applications are assessed by the Belastingdienst, which expects regular imports and records that allow customs declarations to be reconciled with VAT returns.
How Article 23 helps companies with a fulfilment hub in the Netherlands
The Netherlands is one of Europe’s main gateways for goods arriving from Asia, the US and the rest of the world. Many businesses import stock through Rotterdam or Schiphol into a Dutch fulfilment centre then distribute it to customers across the EU. Article 23 supports this model at the point of import:
- Import: goods from outside the EU are cleared by Dutch Customs without an upfront import VAT payment at the 21% standard rate.
- Storage: stock is held in the Dutch fulfilment hub with no working capital locked up in import VAT.
- Distribution: goods are shipped onward to EU customers as intra-Community supplies to businesses or as distance sales to consumers reported through OSS.
- Reporting: import VAT is declared and deducted in the Dutch VAT return, keeping the position cash neutral.
Import VAT with and without Article 23
| Without Article 23 | With Article 23 | |
| Import VAT at customs | Paid in cash when goods are released for free circulation | Not paid at customs |
| VAT return | Import VAT reclaimed as input VAT after the return is filed | Import VAT declared and deducted in the same return |
| Cash flow | Working capital tied up until the VAT is recovered | Cash neutral for fully taxable businesses |
| Customs process | Import VAT payment or guarantee to arrange for every shipment | Import VAT removed from the customs payment process |
| Example: €100,000 import | €21,000 paid upfront then recovered weeks or months later | €0 net cash outlay |
Why companies find Article 23 useful
- Stronger cash flow: import VAT is no longer pre-financed, freeing working capital for inventory, marketing and growth.
- No waiting for refunds: the import VAT is offset in the same return rather than recovered weeks or months after payment.
- Simpler customs clearance: import VAT is taken out of the customs payment process, reducing the payments and guarantees needed for each shipment.
- Scalability: the benefit grows with import volumes, making it well suited to high-volume e[1]commerce and wholesale supply chains.
- A competitive EU gateway: combined with Dutch port, airport and logistics infrastructure, Article 23 makes the Netherlands an efficient base for serving the whole EU market.
- Pricing flexibility: lower financing costs support more competitive pricing for EU customers.
Why choose Tax Desk for Article 23
- End-to-end support: Dutch VAT registration, Article 23 licence application, fiscal representation for non-EU businesses and ongoing Dutch VAT returns including reverse charge on imports.
- Joined-up EU compliance: one provider for the obligations that follow your goods from the Dutch hub, including OSS, IOSS, Intrastat and EPR.
- Proven technology: our platform was originally built by KPMG for Amazon and is designed for high volume cross-border sellers.
- Dedicated experts: a named account manager supported by country specialists, with everything managed through our client portal.
- Audit support: if the Belastingdienst or Dutch Customs raises questions, we support you through audits and enquiries.
Talk to Tax Desk about Article 23
Our team will review your import flows and fulfilment set-up in the Netherlands then confirm how Article 23 can work for your business. Visit www.taxdesk.com to get in touch.
