Provision of services in the Netherlands: cross-border versus establishment If you are a resident from one of the countries within the European Economic Area (Europese Economische Ruimte, EER) or from Switzerland, you should be able to offer your services in the Netherlands without any legal obstructions. This can be done either by establishing your company in the Netherlands or by offering your services in the Netherlands from within your own country. No difference between establishment and cross-border service Regardless of what you choose, the rules that apply to the services provided by you are, in principle, the same. Dutch legislation does not differentiate between foreign or Dutch service providers. The same is also true in terms of establishment versus temporary, cross-border service. In Dutch legislation, specific rules apply to the activity that you conduct. Who performs the activity or where this person comes from is considered not to be relevant. When is there a difference? For certain activities or services, you must have an establishment in the Netherlands. This is true, for example, for someone running a cafe or setting up a childcare centre. In this case, there are differences in terms of laws and regulations, and one must thus register an establishment in the Netherlands with the Dutch Chamber of Commerce and the Dutch Tax and Customs Administration. Please note: We will make explicit mention on our website, should Dutch legislation distinguish between Dutch and foreign service providers for a specific activity, or between established and temporary, cross-border service. Taxes The Dutch Tax and Customs Administration does impose certain rules on foreign service providers, concerning the payment of tax in the Netherlands: The Dutch Tax and Customs Administration will view you as a foreign entrepreneur if you are not established in the Netherlands. This is the case if you do not have a permanent establishment in the Netherlands. In this case you may still need to pay Dutch income tax, but the rules are different. If your company is established outside of the Netherlands, and you do business with the Netherlands, you will encounter specific Dutch VAT rules. You can read up on how to calculate VAT on the website of the Dutch Tax and Customs Administration. If you are established in the Netherlands or if you have a permanent establishment here, you will be subject to the same VAT rules as other entrepreneurs in the Netherlands. If you run a business in the Netherlands or employ personnel in the Netherlands, you will likely have to pay payroll tax and social insurance contributions. This is true even if you have an establishment outside of the Netherlands.
Posted on: Tue, 13 Jan 2015 20:52:57 +0000
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