Brexit & Netherlands

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Peter de Heer

International Tax Partner +31 (0)88 2055 096

Brexit & the Netherlands

The UK have left the EU – with a deal – on January 1, 2021. Are you engaged in business activities with the United Kingdom, or from the UK to another country? Or are you planning to? Then make sure you are prepared for doing business with a country outside the EU.

Brexit & GDPR

UK companies doing business in the EU as well as EU companies doing business in the UK may be affected by Brexit when it comes to processing personal data. In this article we will outline the impact of Brexit on the transfer of personal data between the UK and the EU and vice versa.

Brexit deal from a Global Mobility perspective. The effects on social security coverage.

While the deal does not answer all relevant questions from a global mobility perspective, social security coverage is addressed. It does so in Heading Four of Part Two of the deal and the Protocol on Social Security Coordination. In this contribution, we will outline a number of the most important consequences from a contribution perspective. This is especially relevant for UK-residents working in the EU or EU-residents working in the UK, or planning to do so.

Residence / Work Permit in the Netherlands After Brexit

Brexit has consequences for any British citizens who want to work in the Netherlands as of 1 January 2021. UK-citizens who are registered in the Netherlands keep their rights to residence, employment and study. As of 1 January 2021 the UK citizens who are registered in the Netherlands before 1 January 2021 need a residence document.

UK’s Border Operating Model Published

Some key takeaways which businesses will need to focus on include but are not limited to: import and export declarations, EORI numbers, Duty and VAT payments, and commodity codes. Impacted businesses are encouraged to start planning as soon as possible.

Product Liability for Imports From Great Britain

An important consequence of Brexit is that Dutch importers will become liable for defects and product safety of goods imported from Great Britain.

Transfer Pricing and Business Restructurings

Due to Brexit, certain business activities or goods may have moved from or to the UK that were not previously there. Such changes can have profound tax and transfer pricing effects that have to be considered.

Exporting CE-marked Goods to Great Britain

Do you export goods to Great Britain with a CE marking? After Brexit a CE marking is no longer a ticket to the British market. In the United Kingdom, British rules for product safety and product liability will apply from 1 January, 2021. How do you ensure that you can continue to export goods to Great Britain after Brexit?

Importing From the UK After Brexit: Article 23 Permit

The UK is no longer part of the EU’s customs union. As a result, VAT will be due on import, in addition to any customs duties. The VAT due on import and any customs duties must be paid to Customs authorities when you submit the import declaration. This means that you actually pay this VAT in advance and only get it back at a later date. You can prevent this by using a so-called Article 23 permit.

What Does Brexit Mean for Your VAT?

The withdrawal of the UK from the European Union has VAT consequences if you do business with British buyers or suppliers. These consequences are greatest if the UK leaves in 2020 without any further agreements with the EU (“no deal”). But what are the most important changes and how can you best prepare for this?

Tax Residency and Substance in the Netherlands

If Brexit determined that it is better to move your company to the European continent, then the Netherlands is a good option. However, it is important to know what it takes for an entity to become a tax resident of the Netherlands.

Setting up a Dutch Private Limited Company (BV)

With Brexit being an irreversible occurrence, your business interests with mainland Europe deserve to continue like ‘business as usual’. To preserve your company’s footprint within the EU, it’s worth considering setting up a Dutch company within your corporate structure and moving your European business to the Netherlands.

Financing a Dutch BV in Response to Brexit

As a result of the approaching Brexit, many businesses have already decided to open a branch in the Netherlands. This way they continue to have access to the European market, and with that the four European freedoms remain within reach. Free movement of people, goods, services and capital contribute to easy business within a single European market.