Indirect Tax News - April 2022

Foreign entrepreneurs using OSS need not appoint tax representative

New rules that apply in the Netherlands retroactively to 1 July 2021—the date the revised EU VAT rules on e-commerce became effective—eliminate the requirement for certain foreign entrepreneurs making supplies to Dutch customers to appoint a VAT representative (for an analysis of the EU VAT rules, see the article in the June 2021 issue of Indirect Tax News).

Before 1 July 2021, a foreign entrepreneur established in a third country that had not concluded a mutual assistance agreement with the Netherlands was required to appoint a tax representative to satisfy its VAT obligations in the Netherlands on distance sales. Under the revised Dutch rules, if the foreign entrepreneur makes use of the One-Stop Shop scheme, it is no longer necessary to appoint a tax representative in the Netherlands since the declaration and remittance of VAT is made through another EU member state.

Madeleine Merkx

Maxime Leenders