Importing services from a non-EU country
When you import services from abroad – hiring a foreign photographer or translator, for example – the service provider will usually reverse-charge VAT to you. If a person from outside the EU comes to the Netherlands to provide the service, make sure they have the right qualifications and permits. If you hire them as an employee, different rules apply than if you only contract them for a temporary project.
You are usually the one to declare VAT
The service provider usually reverse-charges the VAT to you. You will then receive an invoice without VAT, stating that the VAT has been reverse-charged to you. You will then have to calculate the VAT yourself, and declare it in your VAT return. There are exceptions to the reverse-charge process. You can use the Services to and from foreign countries tool (in Dutch) to find out who has to declare VAT: you or your provider.
Are you allowed to deduct the VAT on your business expenses (in Dutch)? Then you can deduct the VAT you pay from your VAT return as input tax. You will effectively have paid no VAT.
If the service provider is not allowed to reverse-charge VAT to you, you will pay the foreign VAT rate. Check VAT refund options with the foreign tax authority.
Check: Employee or self-employed professional?
Do you want someone from abroad to perform the service for you, here in the Netherlands? Then decide whether you want to employ them for this purpose or hire them as a freelancer. A non-EU self-employed professional often needs a residence permit for self-employment. Also check whether you need to apply for a work permit for your employee or freelancer.
If you hire someone as a self-employed professional, check together that they are allowed to carry out the assignment. You must avoid false self-employment.
Hiring an artist
If you hire a self-employed artist, you may have to use the artist provision. You will have to pay payroll taxes, but no social insurance premiums.
Personal care services
Personal care provided in the Netherlands is subject to Dutch law, no matter who provides it. Service providers must comply with Dutch quality standards, such as having valid qualifications, or (in the case of health professionals) being registered in the BIG register.
Tips for buying foreign services
- Draw up a contract to document your agreements. Unless you and your supplier have agreed otherwise, Dutch laws and regulations apply to services rendered in the Netherlands.
- If necessary, arrange sponsorship or a sponsorship declaration for the person who will perform the service in the Netherlands.
- Will the person in question stay in the Netherlands for longer than 3 months and are they from outside the EU? Then check if they have a long-stay visa (MVV).
- Make sure you keep your records properly (in Dutch). If you are doing business both inside and outside the EU, that difference should show in your records.
- Are you buying services from a country within the EU? Check which rules apply.