Nederlands
For international e-commerce brands, Europe is a massive growth opportunity. But there’s a catch: the European VAT system is notoriously complex. Every EU country applies its own rates, registration rules and reporting requirements. That means endless admin and, in many cases, paying import VAT upfront. This creates serious cashflow pressure. For fast-growing D2C brands, it can slow down expansion and increase operational stress.
The Netherlands stands out in this complicated landscape. As Europe’s logistics hotspot, it combines its strategic location with smart fiscal tools that reduce VAT burdens and streamline compliance. With arrangements like Article 23 and VAT deferral, plus efficient customs processes, the Netherlands offers a unique mix of logistics strength and tax advantages.
Why VAT is a roadblock for international e-commerce in Europe
The EU has 27 member states, each with its own VAT rules. If you sell in multiple countries, you often need to register, report and pay VAT in each of them separately. That means a lot of admin and high compliance costs.
On top of that, import VAT usually has to be paid immediately when goods enter the EU. In practice, this means you finance VAT upfront—often 21% or more of your shipment’s value—long before you’ve sold the products. For expensive electronics or large volumes, that’s a serious drain on your working capital. Yes, you can reclaim the VAT later, but the process is slow, complicated and different in every country. Delays and mistakes are common.
The EU has tried to make things easier with the One-Stop-Shop (OSS) and Import One-Stop-Shop (IOSS). But IOSS only applies to shipments under €150, which leaves out most larger e-commerce orders.
This combination of fragmented registration, complex reclaim processes and upfront VAT payments makes Europe challenging for international sellers. Here’s where the Netherlands makes a big difference.
Article 23 and VAT Deferral: The Dutch cashflow boosters
The Netherlands offers something unique: Article 23 of the VAT Act, combined with VAT reverse charge rules. In simple terms, this allows you to postpone paying import VAT until your VAT return. Instead of paying 21% at the border, you declare it in your VAT filing—where it’s due and deductible at the same time. The result: no real cashflow impact.
For e-commerce brands using the Netherlands as their hub, this means you don’t need to advance huge sums in VAT. The VAT shows up as both payable and reclaimable in your accounts, keeping your working capital intact.
Even better: you don’t need a physical entity in the Netherlands to use this scheme. By appointing a Dutch fiscal representative, you can access the system and stay compliant without being directly liable yourself.
Other large EU markets don’t offer the same benefit. Germany requires upfront VAT payment at import. France has options, but they involve strict conditions and heavy admin. Belgium has reverse charge, but the process is cumbersome. The Dutch mix of Article 23, VAT deferral and smooth fiscal representation is far more practical for fast-scaling e-commerce.
Netherlands vs. other EU countries: Key VAT differences
While VAT is harmonized across the EU, execution differs a lot from one country to another. That has a big impact on flexibility, admin costs and cashflow.
- Germany: No import VAT deferral, strict fiscal rep requirements.
- France: Deferral possible, but high admin thresholds and bank guarantees.
- Belgium: Reverse charge exists, but procedures are slow and complex.
- Netherlands: Article 23 deferral, straightforward fiscal representation, no physical entity needed.
This fiscal flexibility, combined with the Netherlands’ role as a logistics hub (Rotterdam, Schiphol), makes it one of the most attractive entry points into Europe. Fewer barriers, smoother cashflow, faster growth.
Dutch benefits for margins, cashflow and scalability
The Dutch VAT advantage is about more than just import deferral. It directly strengthens your business fundamentals:
- Free up working capital by avoiding 21% upfront VAT payments.
- Lower compliance costs with efficient processes and fiscal representation.
- Faster customs clearance via Rotterdam and Schiphol, reducing lead times and inventory costs.
- Simplified multi-country VAT filing via OSS, minimizing admin risks.
For US e-commerce brands, this combination removes financial and administrative roadblocks, making it easier to scale into Europe with confidence.
New EU VAT reforms and the Dutch OSS advantage
From 2025, new EU VAT rules kick in. A uniform €10,000 threshold for distance sales and mandatory OSS registration will simplify compliance, but only if your system is well set up.
The Netherlands is a frontrunner here. Its tax system and authorities actively support OSS registration and VAT filing. Through OSS, you can register in one EU country and declare VAT for all others. No need for multiple registrations, no endless paperwork.
Combine that with Article 23 import deferral, and the Netherlands becomes the ideal fiscal hub for navigating the new rules. For American brands, this means easier, faster and cheaper access to Europe’s consumer markets.
The Netherlands: A fiscal springboard for e-commerce in Europe
Europe’s VAT system is complex, and it can block growth with red tape and cashflow strain. The Netherlands breaks through those barriers. With Article 23, VAT deferral and OSS, it offers solutions that directly tackle the biggest pain points.
Add its central logistics location and advanced customs infrastructure, and you’ve got the perfect base for European expansion. For US e-commerce brands, the Netherlands isn’t just a logistics hub, it’s also a smart fiscal choice. You save cash, reduce admin and scale faster.
Ready to unlock Europe with a Dutch fulfilment hub? Get in touch with us to explore how Fulfilment Solutions can accelerate your expansion.
