Netherlands Article 23 Licence: Guide for Importers

 

 

 

 

Netherlands Article 23 Licence: A Complete Guide for Importers

 

The Netherlands is one of the most popular entry points into the European Union for international businesses. One of the key reasons for this is the Dutch Article 23 Licence. A valuable VAT simplification that can significantly improve cash flow for importers.

Whether you are an ecommerce seller, Amazon FBA business, importer, or international trader, understanding Article 23 can help reduce administrative burdens. It makes importing goods into the EU more efficient.

What is the Netherlands Article 23 licence?

The Article 23 Licence is a special VAT deferment mechanism provided by the Dutch Tax Authorities. It allows businesses importing goods into the Netherlands to postpone the payment of import VAT at the border.

Instead of paying import VAT immediately when goods enter the Netherlands, the VAT is accounted for through the Dutch VAT return.

This means businesses can declare both the import VAT payable and the VAT recoverable on the same VAT return, often resulting in no immediate VAT payment.

How does article 23 work?

Without article 23

When goods are imported into the Netherlands:

  • Import VAT becomes payable at customs.
  • The importer must pay the VAT before the goods are released.
  • The VAT can usually be reclaimed later through a VAT return.
  • This creates a cash flow burden.

With article 23

When goods are imported:

  • No import VAT is paid at customs.
  • Import VAT is postponed.
  • The VAT is declared on the Dutch VAT return.
  • Input VAT can be reclaimed simultaneously.
  • Cash flow is preserved.

Key benefits of article 23

  1. Improved Cash Flow

The biggest advantage is avoiding the upfront payment of import VAT.

For businesses importing high-value goods, this can free up significant working capital that can be used for inventory, marketing, and business growth.

  1. Faster Customs Clearance

Because VAT does not need to be paid before goods are released, customs procedures can often be streamlined and simplified.

  1. Ideal for Amazon FBA Sellers

Many Amazon FBA sellers import products into European fulfilment centres through the Netherlands.

Article 23 helps sellers:

  • Reduce import costs
  • Improve cash flow
  • Manage EU inventory more efficiently
  • Expand into European markets
  1. Competitive Advantage

Businesses using Article 23 can allocate funds more effectively compared to importers who must pay VAT upfront.

This can improve pricing flexibility and profitability.

  1. Simplified VAT Recovery

Rather than waiting to reclaim import VAT from the tax authority, businesses account for the VAT directly through their Dutch VAT return.

Who can apply for article 23?

The licence is available to:

  • Dutch-established businesses
  • Non-Dutch businesses with a Dutch VAT registration
  • Importers using the Netherlands as an EU entry point
  • E-commerce and Amazon sellers
  • International trading companies

Non-EU businesses can also benefit from Article 23 when properly registered for Dutch VAT and meeting the relevant requirements.

Why international businesses choose the Netherlands?

The Netherlands offers several advantages for importers:

  • Strategic location within Europe
  • World-class logistics infrastructure
  • Access to the Port of Rotterdam
  • Efficient customs procedures
  • Strong support for international trade

Combined with Article 23, these benefits make the Netherlands one of the most attractive import hubs in Europe.

Article 23 and Amazon FBA

Amazon sellers frequently use Dutch import routes to move products into Europe.

Benefits include:

  • No upfront import VAT payment
  • Better inventory management
  • Improved cash flow
  • Easier expansion into multiple EU countries

For many e-commerce businesses, Article 23 is a key component of an efficient European VAT and logistics strategy.

Compliance Requirements

Businesses using Article 23 must:

  • Maintain a valid Dutch VAT registration
  • Submit accurate Dutch VAT returns
  • Keep proper import and accounting records
  • Comply with Dutch tax regulations

Failure to meet compliance obligations may result in penalties or the withdrawal of Article 23 authorisation.

The Netherlands Article 23 Licence is one of the most valuable VAT simplification schemes available to international importers. By allowing import VAT to be deferred and reported through the VAT return, businesses can significantly improve cash flow, reduce administrative burdens, and streamline EU import operations.

For importers, e-commerce businesses, and Amazon sellers entering the European market, obtaining a Dutch VAT registration together with an Article 23 Licence can provide substantial financial and operational advantages.