As from January 1st of 2021, the Brexit transition period has transformed into a ful UK separation from the European single market and the European customs union. As a result, EU tax directives do no longer apply to UK tax subjects. The bilateral tax treaty between the United Kingdom and The Netherlands however continues to be in force, and provides for a number of the same facilities as were provided by EU Directives, especially for withholding taxes on cross-border financial flows.
This is very much different for VAT and customs. UK companies can since Brexit no longer benefit from facilities such as the 0% rated intracommunity supply of goods and simplified treatment of triangular transsctions. EU VAT incurred by UK companies can only be recovered by the VAT refund request for non-EU companies. And the new E-Commerce laws will apply to the UK as a non-EU country. Just a couple of substantial changes for UK companies. It is thus quite logical that UK companies either decide to move their residence to an EU country or set up a (sales) subsidiary in an EU country. And it’s even more logical that UK companies in large numbers choose The Netherlands to set up their post Brexit EU business:
- Nearby the UK
- Excellent financial and fysical infrastructures
- Transparant and efficient sets of rules
- Attractive corporate income tax rates
- Specific corporate income tax facility for profit made with innovative work
- Attractive facilities for incoming employees (30% of salary exempt from income tax)
- Elaborate system of tax treaties
- Great living environment
Maguire Tax & Legal assists UK companies in setting up their Dutch entity. We advise on your wishes and make an action plan. We analyze your international VAT and customs positions. We incorporate your Dutch entity and ensure you have a soft landing. We liaise with the Dutch tax authorities and get you compliant. We arrange any facility that may be applicable to you. We handle the financial accounting, payroll administration and tax filings – all inhouse. And we do this fast, efficient and ar decent rates. Are you interested to know more? Click here.