Deferment or Postponed VAT Accounting

This term refers to the reverse-charge mechanism wherein you are not required to pay the VAT on import immediately. The VAT can then be paid when you file your periodic VAT return, offering significant cash flow benefits.

In the Netherlands, to make use of deferred VAT at import you will need an Article 23 permit. As a foreign entity, you are not able to apply for an Article 23 permit yourself. However you can appoint a limited tax representative and use their VAT number and art. 23 import license.

In the UK, to make use of postponed VAT accounting, your business needs to be registered for VAT in the UK. If you are not VAT registered in the UK you will need to appoint a representative.

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