Importing services from an EU country
In the European Union (EU), there is free movement of services and of people. This means that someone from the EU may provide services in another EU country without needing a visa. If you buy a service from an EU country, the service provider usually reverse-charges the VAT to you.
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.
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.
Claiming a refund of foreign VAT
If the provider is not allowed to reverse-charge VAT to you, you will pay the foreign VAT rate. You can often claim a VAT refund from the Netherlands Tax Administration. Read more about VAT on services from other EU countries.
Who pays the VAT?
Use the Tax Administration’s Services to and from foreign countries tool (in Dutch) to check what you must do with VAT.
Hiring a self-employed professional
Do you want someone from abroad to perform the service for you, here in the Netherlands? Then check whether you want to employ them for this purpose or hire them as a freelancer. If you hire a self-employed professional, you are the client and not an employer. Check together whether the person may do the assignment. You must avoid false self-employment.
Does the person have a valid passport from an EEA country or Switzerland? If so, you do not need to apply for a work permit (TWV).
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 purchasing foreign services
- Draw up a contract to document your agreements. Unless you and your provider have agreed otherwise, Dutch laws and regulations apply to services rendered in the Netherlands.
- 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.