Netherlands: New policy statement on VAT fixed establishments
Netherlands: New policy statement on VAT
The Deputy Minister of Finance in December 2020 published a new policy statement concerning the rules for value added tax (VAT) fixed establishments. The policy statement is relevant for internationally operating businesses with one or more fixed establishments.
The policy statement, among other things, sets out the government’s position concerning the concept of a fixed establishment and the VAT treatment of transactions between a head office and a fixed establishment. One important change from the previous policy statement (2003) is an update of the guidelines on VAT recovery.
The policy statement addresses:
- Sales fixed establishment and purchase fixed establishment
- No VAT on transactions between a head office and fixed establishment
- VAT recovery right on the basis of cross-border use of costs
Read a January 2021 report prepared by the KPMG member firm in the Netherlands
© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.