Building Across Borders: Securing Dutch VAT Compliance for a Romanian Client

The client's problem

A Romanian client of our firm has been building solid timber frame houses. The client has expanded internationally and delivered and installed house kits in the Netherlands for the benefit of Dutch private individuals. The client was informed that Dutch VAT was due on the construction of real estate in the Netherlands.

Our solution

We advised the client to obtain a Dutch VAT registration number.

What did we do?

We applied for a Dutch VAT registration number with the Dutch tax authorities. At the same time we reviewed the draft invoices from a Dutch tax perspective, before they were sent by our client to the Dutch customer. Moreover, we have been assisting client with preparing and filing the quarterly VAT returns.

Current situation

In case no Dutch VAT is due during a quarter, the company is still required to submit a Dutch VAT return. We still assist the Romanian client with the preparation and filing of their Dutch VAT returns. When there are no more sales expected in the Netherlands, we can eventually assist with the deregistration of the Romanian company for Dutch VAT purposes.