Import Procedures

The official model for written declarations to customs is the Single Administrative Document (SAD). The SAD serves as the EU importer's declaration.  It encompasses both customs duties and VAT and is valid in all EU Member States.

As part of the "SAFE" standards advocated by the World Customs Organisation (WCO), the European Union has set up a new system of import controls- the "Import Control System" (ICS)- which aim to secure the flow of goods at the time of their entry into the customs territory of the EU. This control system, part of the Community Programme eCustoms, has been in effect since 1 January 2011. Since then, operators are required to fill out an Entry Summary Declaration (ENS) to the customs of the country of entry, prior to the introduction of goods into the customs territory of the European Union.

Non-agricultural goods entering EU territory must adhere to customs formalities (ENS). This declaration must be carried out by the person bringing the goods to the territory. The Summary Declaration can be made electronically or on a form provided by the customs authorities. The deadline for lodging the ENS depends on the mode of transport carrying the goods.

Since July 1, 2009, all companies established outside of the EU are required to have an EORI number if they wish to lodge a customs declaration or an Entry/Exit Summary declaration. Once a company has received an EORI number, it can use it for exports to any of the 27 EU Member States.
Goods in transit only need a single EU transit document.

Customs duties are the same for all EU member states. VAT, on the other hand, is established by the tax authorities of each member country, and differs for each country.

Below is a summary of VAT rates that apply in the Netherlands:

• Zero percent rate applies to exports;
• 9% rate applies to necessities such as food, medicines, and transportation;
• 21% is the general or standard rate and applies to most goods.

VAT is levied at the same rate for imports into the Netherlands as for domestic products or transactions.  The basis on which VAT is charged on imports is the C.I.F. value at the port of entry, plus any duty, excise taxes, levies, or other charges (excluding the VAT) collected by Dutch Customs at the time of importation.  This total represents the transaction value of the import when it clears customs. Dutch importers are liable for payment of customs duties, VAT, and any other charges at the time of clearing the goods through customs. Temporary imports that will be re-exported are not subject to the VAT.  An importer may have to post a temporary bond for the amount of customs duties and taxes, but this is cancelled when the goods are taken out of the country.

Additional information about import procedures can be found on the European Commission website.
The Dutch Customs website also provides necessary information regarding the customs clearance procedure.

Specific Import Procedures

The Union Custom Code - adopted on 9 October 2013 as Regulation (EU) No 952/2013 - Title V provides for the following customs simplifications:

• Simplified declaration (Article 166 UCC)
• Centralised clearance (Article 179 UCC)
• Entry in the declarant's records (Article 182 UCC). This type of customs declaration is not allowed for all customs procedures (e.g. exclusion of transit).
• Drawing-up of customs declarations for goods falling under different tariff subheadings ( Article 177 UCC)
• Self-assessment (Article 185 UCC)

For more information, please visit the Dutch Customs website.

Distribution channels

The turnover of the Dutch retail sector was valued at EUR 45.1 billion in 2021 (USDA).     According to the latest data released by Statistics Netherlands (CBS), the Dutch retail sector recorded 0.7% year-on-year turnover growth in May 2022. The volume of sales went down by 5.4%. Turnover was up in both the food sector and the non-food sector. In May 2022, turnover in the non-food sector was up by 2.7% year-on-year. Shops selling food, beverages and tobacco achieved 1.3% more turnover in May 2022 than in the same month last year. Supermarkets saw a turnover growth of 1.2%, while turnover of specialist shops increased by 2.2%. Furthermore, online sales decreased by 8.4%.

In 2021, supermarkets continued to benefit from the Covid-19 pandemic-induced closures. Both Albert Heijn and Jumbo gained market shares during the pandemic, while discounters did not benefit from the pandemic (Fresh Plaza).

Approximately 75% of the Dutch food retail outlets are full service supermarkets, operating on floor space between 500 and 1,500 square meters, located downtown and in residential areas. Retailers with full service supermarkets have responded to the need of the Dutch to have these supermarkets close to their homes. The remaining 25% includes mainly convenience stores (near office buildings, city centre, motorways and train/metro stations), some wholesalers and just a few superstores (conveniently located in shopping malls and industrial parks) (USDA).

Distribution market players

The Dutch retail industry is rather consolidated. In 2021, the main actors are :

•    Albert Hejin, 35.9% market shares
•    Superunie, 26.4% market shares
•    Jumbo Groep, 21.8% market shares
•    Lidl, 10.7% market share
•    Aldi Holding, 5.2% market shares (USDA)

Most of the food retail stores are full-service supermarkets.  In addition there are some department stores (HEMA and Bijenkorf), convenience stores, gas markets (On the Run/Snack & Shop Shell Station, GO shops – the fresh way, Café Bonjour, and Wild Bean Café) and wholesalers (De Kweker, Sligro, Makro, Bidfood, VHC – Horesca, Hanos, and Zegro) that all sell food products.

Retail Sector Organisations

Dutch Food Retail Association

Consumption Taxes

Nature of the Tax

BTW (Belasting Toegevoegde Waarde) - Value-Added Tax (VAT)

Tax Rate

21%

Reduced Tax Rate

A reduced rate of 9% applies to foodstuffs (as goods and as services); books (hard copy as well as electronic publications); paintings and other “cultural goods”; entrance to museums, concerts and similar events; passenger transport; hotel accommodation.

Exports of goods, intra-Community supplies of goods, supplies of solar panels for installation on or near residential properties, and supplies to ships and aircraft used for international transportation are zero-rated.

Other Consumption Taxes

Other taxes include: liquor tax, tobacco tax, gasoline tax, aviation fuel tax, liquefied petroleum gas tax, petroleum tax, motor vehicle tax and other taxes levied as excise duty on the end price to consumers. If the goods are used solely as raw materials, no excise tax applies. Taxes on exported goods typically qualify for a refund.
From 2022, a unilateral air passenger tax is imposed by airport operators. The rate is EUR 26.43 (2023) for each passenger departing from a Dutch airport (an exemption applies to transfer passengers and children under the age of two).

Corporate Taxes

Company Tax

Tax Rate For Foreign Companies

Companies incorporated under Dutch law are deemed to be residents of the Netherlands. For foreign companies conditions such as the place of management and control are used to determine the tax residency.

Capital Gains Taxation

Capital gains are generally included in taxable profits and taxed at the corporate rate. A participation exemption is provided for qualifying dividends and capital gains from the sale of shares in a company. The firm investing in a subsidiary must meet the following requirements: (a) maintain a minimum 5% ownership of the subsidiary; (b) the subsidiary is not held as a portfolio investment or the subsidiary is subject to a reasonable corporate tax rate in its country of residence; or (c) the share of "dormant" assets (such as portfolio investment) of the subsidiary does not exceed 50% of the total.

Main Allowable Deductions and Tax Credits

Business expenditure is generally tax-deductible, including costs incurred in setting up a business; reserves kept for certain types of future spending and book profits; rents, royalties and interest payments on corporate debt; remuneration of members of the managing and supervisory boards; bad debts; capital losses; pension plan contributions; commissions; bonuses paid to employees through an internal profit-sharing plan; gifts to contributions to religious, social, charitable and other institutions (up to 50% of taxable income or EUR 100,000, whichever is lower); and many types of taxes, including foreign taxes if not already benefiting from a tax treaty (but not corporate income tax). An additional standard allowance is provided for investment in fixed assets. Certain expenses such as fines are non-deductible.

With regard to goodwill, the amortisation for tax purposes is limited to 10% of the purchase price per annum, and the tax depreciation of other fixed assets (i.e. inventory, equipment) is limited to 20% of the purchase price or production costs each year.
Up to 75% of environmentally friendly investment costs can be deducted from taxable profit.

Capital losses are deductible unless attributable to the disposal of a shareholding qualifying for the participation exemption. In 2021, 2020, and 2019, tax losses could be carried back one year and carried forward six years. However, starting from January 1, 2022, a rule allowing unlimited loss carryforward without any time limit is in effect. However, there are restrictions on deducting carryback and carryforward losses when the taxable profit is more than EUR 1 million. If the profit in a particular year exceeds EUR 1 million, the losses can only be offset up to 50% of the excess taxable profit, excluding the initial EUR 1 million that is always deductible.

Other Corporate Taxes

A real estate transfer tax is levied on the acquisition of property in the Netherlands at a rate of 10.4% (increased from 8% as of 1 January 2023) of the market value of the property.
If an entity primarily possesses real estate and meets specific criteria, it may be classified as a "real estate entity." In such cases, the acquisition of shares in that entity, which owns the real estate, could be subject to transfer tax. The classification as a real estate entity is determined when over 50% of the entity's assets comprise real estate, and at least 30% of those assets consist of immovable property in the Netherlands.

Insurance tax at a rate of 21% is levied on insurance premiums, excluding life, accident, medical, invalidity, disability, unemployment and transport insurance, which are exempt.

Various environmental taxes are levied, including a coal tax, an energy tax on the supply of electricity and natural gas, a tap water tax, a waste tax on the disposal of waste and a motor vehicle tax. Moreover, a national CO₂ levy applies to industrial production and waste incineration.

In the Netherlands, there is a fee known as "cijns" that is levied based on the turnover associated with oil and gas production and exploration. Starting from 2023 until 2024, an elevated cijns rate of 65% is applicable to turnover specifically derived from the sale of natural gas at a price exceeding EUR 0.5 per cubic meter.

From 2022, a unilateral air passenger tax is imposed by airport operators. The rate is EUR 26.43 (2023) for each passenger departing from a Dutch airport (an exemption applies to transfer passengers and children under the age of two).

Municipalities levy an additional annual real estate tax at varying rates, which is deductible for corporate tax purposes.

The total aggregate rate for social security contributions is 27.65%, calculated on the first EUR 37,149 of each employee’s gross salary (2023).

Companies annually bringing 50,000 or more kilograms of packing material on the market must pay a ‘waste management contribution’ (rates vary according to various parameters).

Other Domestic Resources

Belastingdienst - Dutch Tax Administration

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed

A list of countries with which the Netherlands has signed a tax treaty

Withholding Taxes

Dividends: 15% (0% for dividends subject to EU directive on the common tax regime applicable to parent companies and subsidiaries of different Member States or paid to a parent company based in a country with which the Netherlands has signed a tax treaty removing this withholding tax)
Interests: 0%/25.8% (paid to entities in low-tax jurisdictions)
Royalties: 0%/25.8% (paid to entities in low-tax jurisdictions)