From Borders to Taxes: Limited Tax Representation Explained

The Dutch business climate is a much-discussed topic in both politics and the business community. Tax policy plays a crucial role in this regard. For foreign entrepreneurs in particular, the question of whether the Netherlands should serve as a gateway to the EU for the import of goods is relevant, particularly in view of the potential cash flow impact of sales tax. For entrepreneurs outside the Netherlands, the tax representative is a crucial link.

In this article, Marjolein van Wingerden and I discuss the role of the limited tax representative (BFV) in achieving cash flow-neutral sales tax on imports and points to consider when performing an audit of the administration. Read the full article to learn more about the risks of the BFV and possible control measures.